Alexa
  • Directory of Taiwan

Dollar lower against yen in Asian trading ahead of Fed's meeting

Dollar lower against yen in Asian trading ahead of Fed's meeting

The dollar fell against the yen in Asian trading Wednesday as risk-averse players increased their yen holdings ahead of the upcoming U.S. Federal Reserve meeting later in the day.
The U.S. dollar was trading at 119.80 yen at 2:50 p.m. (0550 GMT) Wednesday, down from 119.95 yen late Tuesday in New York. The euro fell to US$1.3542 from US$1.3545.
Traders said, however, that the Japanese currency's rise is likely to be short-lived as traders are still finding it hard to come up with fresh reasons to buy the yen while still-wide interest rate gaps between Japan and other countries are in place.
"As long as emerging countries' currencies remain firm, bets on interest rate differentials will stay popular," said Mitsuru Sahara, senior foreign exchange manager at Bank of Tokyo-Mitsubishi UFJ.
Most players remained on the sidelines during the session, awaiting the Fed's policy statement after its meeting later Wednesday.
The Fed is expected to keep interest rates unchanged, and market players also don't expect its statement to deviate much from the previous one. That in turn should help the dollar get back on a gradual upward trend against the yen.
"If the FOMC does not change its stance, the main scenario is a rate cut sometime in the second half of the year," said Sahara.
Against other currencies, the dollar was mixed. It rose 0.61 percent against Philippine peso to 47.330, while dipping 0.47 percent against Indonesian rupiah to 8,847.


Updated : 2021-10-24 17:40 GMT+08:00