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Dollar lower against yen in Asian trading; euro falls ahead of ECB meeting

Dollar lower against yen in Asian trading; euro falls ahead of ECB meeting

The dollar edged lower against the yen in Asian trading Thursday as the Japanese currency rose versus the euro ahead of a European Central Bank meeting.
The U.S. dollar was trading at 117.56 yen by mid-afternoon in Tokyo, down from 117.89 yen from late Wednesday in New York. The euro fell to US$1.2704, from US$1.2713.
The euro fell against the yen on profit-taking prior to a European Central Bank meeting Thursday that's expected to deliver an interest rate hike to 3.25 percent and set the stage for another increase, traders said.
The yen's strength versus the euro also lifted it against the dollar, pushing the U.S. currency to a low of 117.56 yen. Against the dollar, the euro briefly fell to $1.2694.
If ECB President Jean-Claude Trichet says anything about next year's economic outlook that makes additional interest rate hikes seem less likely, then the euro could fall to 148.50 yen and slip toward $1.2600 in the near term, traders said.
Trichet is also expected to reiterate warnings about inflation to prepare financial markets for another rate hike in December.
"Trichet's economic outlook for next year is the risk factor that could cause a minor correction in the euro," said Nobuaki Kubo, vice president of foreign exchange at BBH Investment Services.
Players are also watching for U.S. nonfarm payrolls data Friday. The U.S. economy is expected to have added 125,000 new jobs in September, according to a Dow Jones Newswires survey of economists. In August, nonfarm payrolls rose by 128,000.
Given disappointing data this week on the U.S. manufacturing and services sectors, some speculators are starting to question whether the economic slowdown will end with a soft landing, and that's hurting dollar sentiment, traders said.
Against other Asian currencies, the dollar was mixed, rising to 37.590 Thai baht from 37.580 the previous day, to 9,217 Indonesian rupiah from 9,215. It fell to 3.6868 Malaysian ringt from 3.6925 and to 1.5844 Singapore dollar from 1.5851.


Updated : 2020-12-06 06:52 GMT+08:00