Dollar Stuck in Range as Investors Await More US Data The dollar was stuck in a narrow range against other major currencies Thursday in Asia as investors awaited U.S. jobs figures to be released on Friday, data that could herald the scaling back of the Federal Reserves easing measures. We cant move before we see the figures, said Michiyoshi Kato, senior vice president at forex sales at Mizuho Bank. Mr. Kato said the dollar is likely to trade within a Y101.30-Y103.50 range until the release of the monthly non-farm payrolls data due out on Friday in New York. While refraining from any aggressive bets in the meantime, investors will also closely monitor the revised U.S. gross domestic product data for the third quarter and weekly jobless claims to be released later Thursday. They will also pay attention to assessments of European economies offered by the U.K. and euro-zone central banks. Praevidentia Strategy strategist Masafumi Yamamoto said the greenback will likely rise above Y103 if U.S. GDP data turn out to be stronger than the preliminary readings. Mr. Yamamoto expects the data will be revised up to show an expansion of more than 3%, another confirmation after Wednesdays better-than-expected private jobs data that the U.S. economy is strengthening. FX Concepts head of research Jonathan Clark said the euro is likely to fall to $1.3375 by the end of next week and drop further to $1.3100 by January because the euro-zone economy is likely to weaken amid some deflationary pressure. Because the U.S. economy now looks firm, we expect wider growth differentials between the U.S. and the euro zone, and that will reduce the attractiveness of euro-denominated assets, he said. The dollar was at Y102.26 as of 0450 GMT from Y102.35 late Wednesday in New York, according to EBS. The euro was at $1.3603 from $1.3594 and was at Y139.11, unchanged from late Wednesday. Meanwhile, many Asian currencies consolidated. The dollar rose slightly against the Chinese yuan after the central bank set the parity rate level higher. The greenback was at CNY6.0918 from CNY6.0916 Wednesday close. I dont expect too much volatility in the yuan before the year-end, said a Shanghai-based foreign bank trader. The Indian rupee gained against the dollar in response to early indications of strong support for the main opposition party--the Bharatiya Janata Party--in state elections. The BJP backs an anti-corruption mandate. The dollar was at INR61.65, compared with its Wednesday close of INR62.05. The WSJ Dollar Index, a measure of the dollar against a basket of currencies, was at 73.523 from 73.579. Interbank Foreign Exchange Rates At 23:50 EST / 0450 GMT Latest Previous %Chg Daily Daily %Chg Dollar Rates Close High Low 12/31 USD/JPY Japan 102.26-28 102.33-38 -0.08 102.43 102.18 +17.89 EUR/USD Euro 1.3603-04 1.3592-95 +0.07 1.3614 1.3580 +3.10 GBP/USD U.K. 1.6379-82 1.6381-86 -0.02 1.6388 1.6370 +0.83 USD/CHF Switzerland 0.9009-12 0.9022-26 -0.15 0.9030 0.9006 -1.55 USD/CAD Canada 1.0677-80 1.0680-84 -0.04 1.0683 1.0664 +7.57 AUD/USD Australia 0.9039-42 0.9028-31 +0.12 0.9048 0.9014 -13.01 NZD/USD New Zealand 0.8206-10 0.8196-201 +0.12 0.8218 0.8198 -0.84 Euro Rate EUR/JPY Japan 139.10-12 139.11-15 -0.01 139.28 138.82 +21.55
Posted on: Thu, 05 Dec 2013 06:15:31 +0000
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