Young Journalists Club | Latest news of Iran and world

News ID: 1878
Publish Date: 10:57 - 14 August 2013
Tehran, YJC. -- The dollar was under pressure on Wednesday after a weaker-than-expected US retail sales report, while euro trading focused on fresh eurozone economic growth data due later in the day.
In afternoon Tokyo trade, the greenback changed hands at 98.14 yen, slipping from 98.22 in New York Tuesday afternoon.
 
The euro was at $1.3259 and 130.16 yen, weakening from $1.3262 and 130.26 yen in US trading.
 
Dealers said there were few immediate cues to move the dollar-yen pair as markets look for more clues as to when the US Federal Reserve will start rolling back its huge monetary easing plan. 
 
Such a move that would be positive for the US unit by reducing the number of dollars in the financial system, boosting demand.
 
However, Tuesday's release of US retail sales showing a modest rise of 0.2 percent in July, shy of forecasts, raised questions about the timeline for any draw down on the Fed stimulus. 
 
Fed officials have said a pullback hinged on signs of a firm recovery in the world's largest economy. Investors will be keeping a careful eye on more US economic data, including industrial production, due out this week.
 
Trading in the Tokyo market was also thin with many market players taking the week off during Japan's summer Obon holiday.
 
"It is difficult to take long-positions as we have few trading factors" said Yosuke Hosokawa, dealer with Sumitomo Mitsui Trust Bank.
 
"The dollar is expected to be in range-bound trade at least for the rest of this week," he added.
 
Kengo Suzuki, chief forex strategist at Mizuho Securities, added that "trading is likely to be driven by the stock market". 
 
Dollar-yen trading and the local stock market are intertwined as the value of the yen is closely linked to the profitability of the Japanese exporters.
 
The euro, meanwhile, was steady after fresh data supplied more evidence the crisis-hit eurozone could be exiting recession.
 
Industrial output in the 17-nation bloc bounced back sharply in June, rising 0.7 percent from May when it fell 0.2 percent, official data showed on Tuesday. 
 
That came ahead of the release of overall growth figures for the second quarter due later Wednesday, which are expected to show an exit from recession.
 
The dollar strengthened against other Asia-Pacific currencies.
 
It firmed to 43.81 Philippine pesos from 43.72 pesos the previous day, to 1,118.95 South Korean won from 1,116.45 won, to Sg$1.2680 from Sg$1.2629 and to Tw$29.97 from Tw$29.95.
 
The greenback also strengthened to 61.46 Indian rupees from 61.42 rupees, to 31.30 Thai baht from 31.23 baht and to 10,313 Indonesian rupiah from 10,308 rupiah.
 
The Australian dollar slipped to 91.02 US cents from 91.32 cents.
 
The Chinese yuan fetched 16.01 yen from 15.92 yen.
 
AFP
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