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Dollar gains on strong U.S. data, Japanese uncertainty

Dollar gains on strong U.S. data, Japanese uncertainty

The dollar extended moderate gains against the yen in Asia on Monday in thin holiday-season trade after strong U.S. data and uncertainty on the outlook for Japanese interest rates, dealers said.
The dollar firmed to 118.85 yen in Tokyo afternoon trade from 118.75 late Friday in New York. On Friday the dollar swung as high as 118.97 yen, nearing a two-month high of 119.36 yen posted on October 25.
The euro slipped to 1.3109 dollars from 1.3141 in New York and to 155.80 yen from 156.05.
The dollar continued to receive support on short-covering and fresh demand from Friday's strong economic data, including a rise in consumer spending and durable goods orders for November,
But few dealers expected the dollar to make major headway due to a mixed picture for the U.S. economy in the near term.
With volume low due to the Christmas holiday, Japanese traders looked to the future course of the Bank of Japan.
The central bank last week kept its key interest rate at a super-low 0.25 percent and downplayed expectations of an immediate hike, but the market is watching data out on Tuesday.
"The market at this moment is unsure whether the Bank of Japan will raise rates next month and has a 50-50 expectation of a rate hike," said Toru Umemoto, foreign exchange strategist at Barclays Capital.
The Thai baht, whose recent rise last year led the government to impose and then abruptly rescind tough capital controls, inched up to 36.43 from 36.45 on Friday afternoon. It had hit a nine-year high of 35.12 to the dollar a week ago.
But the South Korean won slipped to 928.60 to the dollar from 928.25 after comments by an official in Seoul on Friday that the government had "unlimited resources" to curb the strong won which is hurting exporters.
The dollar fell to 49.28 Philippine pesos from 49.31, while rising to 9,080 Indonesian rupiah from 9,075.


Updated : 2021-06-14 22:53 GMT+08:00