US dollar up in Asia ahead of Fed meeting
July 30, 2014, 12:04 am TWN
TOKYO -- The dollar edged up against the euro and yen Tuesday with investors awaiting the U.S. Federal Reserve's latest policy meeting as the bank's head faces calls to hike interest rates earlier than she has indicated.
The greenback stood at 101.97 yen in Tokyo, compared with 101.85 yen in New York Monday.
The euro bought US$1.3432 and 136.98 yen, against US$1.3438 and 136.87 yen in New York.
Fed board members kick off their meeting on Wednesday and while they are expected to keep rates at record lows and further cut their stimulus program investors are hoping for an indication that monetary policy could be tightened soon.
With the economy getting back on track, Janet Yellen is facing growing calls to take a more hawkish stance to quell what some analysts warn are overheated asset markets and bubbles in some sectors.
More economists suggest say the Fed bring forward its plan to lift interest rates to the end of this year, instead of late 2015 as previously indicated.
Richard Fisher, the hawkish head of the Federal Reserve's Dallas branch, said in a newspaper piece on Sunday that the country is experiencing financial excess that is of our own making.”
The euro has sunk to multi-month lows against the dollar and yen owing to fears over the impact on the eurozone economy of fresh sanctions against Russia, a key supplier of energy to the region.
The dollar was mixed against other Asia-Pacific currencies.
It slipped to 31.82 Thai baht Tuesday from 31.83 baht on Monday, and to 1,024.60 South Korean won from 1,026.20 won.
The greenback firmed to 60.14 Indian rupees from 60.10 rupees, to 43.36 Philippine pesos from 43.31 pesos, and to SG$1.2421 from SG$1.2417.
It was unchanged at 11,577.50 Indonesian rupiah
The Australian dollar fetched 93.93 U.S. cents against 93.92 cents, while the Chinese yuan was flat at 16.46 yen.