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Dollar slips against the yen in Asia; players await leads on US interest rates

Dollar slips against the yen in Asia; players await leads on US interest rates

The dollar slipped against the yen in Asia Thursday as most players chose to stick to the sidelines ahead of U.S. factory data that could provide leads on whether an interest rate cut is in the offing.
The U.S. dollar was trading at 118.86 yen on the Tokyo foreign exchange market at 3 p.m. (0600 GMT) Thursday, down from 118.92 yen from late Wednesday in New York. The euro edged down to US$1.2532, from US$1.2533.
The dollar traded in a narrow range in Asia, caught between mild selling by overseas hedge funds and buying from Japanese importers, traders said.
Tokyo traders said overall flows were light as a wait-and-see mood prevailed before the release of the U.S. Federal Reserve Bank of Philadelphia's manufacturing index for October.
Players were paying particular attention to this month's data because the negative reading in September confounded economists' forecasts and caused a sharp decline in the dollar.
"Right now the question is when the Fed will cut rates," said Takuma Kurosawa, head of foreign exchange sales at HSBC.
"So as long as there's data that supports a soft landing and a delay in any rate cut, this will help the dollar," he said.
The dollar was mostly higher against other Asian currencies, rising to 9,159 Indonesian rupiah from 9,150, to 50.020 Philippine pesos from 49.940, and to 957.8 South Korean won from 955.4.