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U.S. dollar gains in Asia on U.S. optimism

U.S. dollar gains in Asia on U.S. optimism

The U.S. dollar rose in Asian trade yesterday, supported by optimism about the outlook for the U.S. economy, dealers said.
The U.S. dollar gained to 91.63 yen in Tokyo morning trade from 91.47 in late Asian trade on Friday.
The euro slipped to US$1.4367 from US$1.4385 but edged up to 131.57 yen from 131.45.
Markets in New York and London were closed on Friday for the Christmas holiday.
The U.S. dollar's strength reflected investors' expectations that the United States will recover from recession more quickly than other major economies, said Marito Ueda, a currency trader at FX Prime.
U.S. data issued last week showed that orders for manufactured durable goods rose in November, while weekly claims for jobless benefits dropped to the lowest level since September 2008.
Markets were looking ahead to the next batch of U.S. indicators due this week, including the Conference Board's consumer confidence index and housing prices, analysts said.
"Both data should be consistent with a gradual recovery remaining on track," predicted Calyon economist Sebastien Barbe.
But markets may be getting ahead of themselves in betting on early interest rate hikes by the US Federal Reserve, he added.
"In our view, the Fed will not raise rates soon. In addition, fiscal worries are also very much present in the U.S.. In our view, those fears should limit the U.S. dollar's upside at some point," Barbe said.
The yen failed to get much of a boost from the latest economic data out of Japan.
Against Asian currencies, the U.S. dollar fell to 1.4063 Singapore dollars from 1.4064 on Friday, to 1,169.80 South Korean won from 1,174.60, and to 46.40 Philippine pesos from 46.51.
The greenback firmed to 9,490 Indonesian rupiah from 9,480, while holding steady at NT$32.25 Taiwan and at 33.38 Thai baht.


Updated : 2021-06-16 14:42 GMT+08:00