Dollar Steadies Vs Yen As Concerns Linger About China Financial System --Dollar steady vs yen after earlier gains as concerns about Chinas financial system linger --China PMI data help ease risk aversion, but arent enough on their own The dollar steadied against the yen in Asia Thursday after giving up earlier gains, as concerns about the Chinese financial system have kept investor sentiment risk averse. The worries flared up in Asia on Wednesday when interbank money rates in China rose. An economic report released Thursday indicating an improvement in Chinas nationwide manufacturing sector briefly helped sentiment, but the move soon lost steam. The preliminary HSBC China Manufacturing Purchasing Managers Index rose to a seven-month high of 50.9 in October, compared with a final reading of 50.2 in September. The data alone are not enough to alter risk-averse sentiment, said Takahiro Iizuka, a trader at Mizuho Trust & Banking Co. With major U.S. economic data scarce (in the coming days), everyone is sitting on their hands, he said, adding that he expects the currency pair to stay in a Y96.50-Y99.00 range for a while. At 0450 GMT the dollar was at Y97.33 against Y97.36 in late New York trade Wednesday. The greenback briefly rose as high as Y97.47 on the PMI data. The benchmark Nikkei 225 stock average index was at 14,325, down 0.69% from Wednesdays close. The yen has been driven by the stock market, said Junya Tanase, chief forex strategist at JPMorgan in Tokyo. In light of the effects on stock markets, Mr. Tanase said attention should be paid to Chinas money market rates, which rose Wednesday amid heightened concerns about the banking system. Chinas central bank is set to drain a net CNY58 billion ($9.5 billion) from the money market this week, after halting its regular open market operations for a second straight week. The Peoples Bank of China wont sell any bills or bond repurchase agreements Thursday, traders said. Mr. Tanase, however, plays down the possibility that recent rise in Chinese rates would develop into the sharper rise seen in June. Market liquidity is expected to improve and interbank rates could calm down once a month-end funding period is over, Mr. Tanase added. The WSJ Dollar Index, which measures the dollar against a basket of major currencies, fell to 71.71 from 71.78. The euro was at $1.3788 against $1.3770. Mizuho Trusts Mr. Iizuka said a rise above the $1.3800 mark is in sight. But he also expressed caution about a continued rise in the single currency after the European Central Bank on Wednesday launched a planned year-long review of the balance sheets of more than 100 euro-zone financial institutions. Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT Latest Previous %Chg Daily Daily %Chg 2150 GMT High Low 12/31 Dollar Rates USD/JPY Japan 97.33-36 97.37-40 -0.04 97.51 97.18 +12.22 EUR/USD Euro 1.3787-90 1.3774-77 +0.09 1.3792 1.3774 +4.50 GBP/USD U.K. 1.6185-88 1.6162-65 +0.14 1.6202 1.6164 -0.37 USD/CHF Switzerland 0.8918-22 0.8921-25 -0.03 0.8926 0.8916 -2.54 USD/CAD Canada 1.0377-78 1.0382-86 -0.07 1.0385 1.0372 +4.54 AUD/USD Australia 0.9647-50 0.9623-26 +0.25 0.9667 0.9610 -7.17 NZD/USD New Zealand 0.8412-16 0.8390-96 +0.25 0.8445 0.8392 +1.64 Euro Rate EUR/JPY Japan 134.19-22 134.12-18 +0.04 134.42 133.90 +17.26
Posted on: Thu, 24 Oct 2013 06:09:36 +0000
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