Dollar gains against euro, yen

Dollar gains against euro, yen
AFP
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First Published: Fri, Jan 02 2009. 12 03 PM IST
Updated: Fri, Jan 02 2009. 12 03 PM IST
Singapore: The dollar rose against the euro and yen on Friday in thin volume on the first trading day of the new year.
The euro bought 1.3852 dollars in Asian afternoon trade, down from 1.3969 late on Wednesday in New York ahead of the new year’s holiday Thursday.
Tokyo markets remained closed on Friday.
The dollar traded at 91.14yen, up from 90.63.
Liquidity should gradually return to the market beginning next week, when traders will be closely watching key US economic data as well as comments from the US Federal Reserve, said Thomas Lam, senior treasury economist with United Overseas Bank Group.
Next Friday the US is to release December employment figures, which Lam sees falling by a further 500,000.
“I think there might be some positioning early next week ahead of the employment number, which might put some pressure on the dollar,” he said.
The US Federal Open Market Committee will on Tuesday release minutes of the December meeting at which it slashed its base lending rate to virtually zero.
The central bank also pledged to take further action to get credit flowing and revive an economy in the worst recession in decades.
Later on Friday, key US manufacturing survey data for December was also expected to provide further insight into the ailing US economy.
Most Europeans believe the euro could surpass the dollar in global importance within five years, according to a survey released this week by the Financial Times and Harris institute.
The pound has struck historic lows against the euro in recent weeks, with the European currency moving toward parity, as the Bank of England slashes interest rates to fend off recession.
Against Asian currencies, the dollar rose to 11,292 Indonesian rupiah from 11,118 on Wednesday, to 47.85 Philippine pesos from 47.41, to 1.4544 Singapore dollars from 1.4383, to 32.85 Taiwan dollars from 32.83 and to 1,271.9 Korean won from 1,267.9.
The greenback fell to 34.72 Thai baht from 35.09.
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First Published: Fri, Jan 02 2009. 12 03 PM IST
More Topics: Forex | Asia | US Dollar | Euro | Yen |