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U.S. dollar traded lower amid U.S. economic concerns

U.S. dollar traded lower amid U.S. economic concerns

The U.S. dollar traded marginally lower against the yen in Asia yesterday, hit by weak U.S. data and a worsening outlook for the world's biggest economy, dealers said.
The U.S. dollar was quoted at 88.08 yen in Tokyo afternoon trade, down from 88.27 yen in New York late Wednesday. The euro fetched US$1.2725 and 112.10 yen, down from US$1.2743 and 112.62 yen.
Concerns about the U.S. economy grew after government data showed retail sales had fallen more than expected in June for a second straight month.
Sentiment worsened further after the Federal Reserve revealed minutes from a June meeting of its policy-setting Federal Open Market Committee (FOMC).
They showed that board members had cut their growth forecast to 3.0-3.5 percent this year, down from the 3.2-3.7 predicted just months ago, and that the Fed was weighing new measures to keep the faltering U.S. recovery on track.
The minutes may cause players in Asia to remain bearish on the U.S. dollar due to heightened expectations that U.S. rates will remain ultra-low for the time being, said Mitsubishi UFJ Trust and Banking forex dealer Hideaki Inoue.
But no sharp currency drops are expected, he said.
"While negative for the U.S. dollar-yen, the FOMC minutes weren't outside the range of expectations," he told Dow Jones Newswires.
Pessimists may be gaining force among Fed board members in the face of a sagging housing market, high jobless rate and weak capital, Credit Suisse said in a note.
The U.S. dollar was mixed against other Asian currencies, rising to 46.31 Philippine pesos from 46.27 Wednesday and to 9,046.25 Indonesian rupiah from 9,040.00, while falling to NT$32.13 from NT$32.14. The greenback was flat at 1.3759 Singaporean dollars and 32.30 Thai baht.


Updated : 2021-01-23 01:16 GMT+08:00