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Greenback worms its way up in sluggish Asian trade

Greenback worms its way up in sluggish Asian trade

The U.S. dollar edged upward yesterday in sluggish Asian trade as the market looked ahead to U.S. data after the U.S. and European central banks left their monetary policies unchanged, dealers said.
The U.S. dollar inched upward to 119.91 yen in Tokyo afternoon trade from 119.90 yen in New York late Thursday.
The euro slightly declined to US$1.3480 from US$1.3483 and to 161.61 yen after 161.68 yen.
On Thursday, the European Central Bank kept interest rates steady at 3.75 percent as expected and signalled a near certain June interest rate hike of 25 basis points.
The ECB decision came a day after the U.S. Federal Reserve made no change in interest rates while maintaining a guardedly positive outlook on the world's biggest economy.
"The euro is facing moderate selling pressure as dealers are adjusting their long (buy) positions in the euro after the ECB meeting ended as expected," said Hironobu Hagi, deputy general manager at Shinsei Bank's capital markets division.
"But a continued fall in the euro is unlikely as there is no particular reason to back up the dollar at this moment," Hagi said. "Now, players are trying to find trading leads to set a direction going forward."
The market was switching focus to several U.S. economic indicators to be released later yesterday, including retail sales and producer price inflation for April as well as business inventories for March, dealers said.
Meanwhile, the Bank of England on Thursday raised its key rate a quarter-point to 5.50 percent, the highest level since 2001, to contend with British inflation which hit a 10-year high in March.
Meanwhile, former U.S. Federal Reserve chief Alan Greenspan was said to have commented on the Chinese currency yesterday while speaking in Singapore, saying it was in China's "self-interest" to allow the yuan to appreciate at a quicker pace.
The value of the yuan has been a key source of trade friction between the United States and China, with Washington accusing Beijing of artificially keeping the currency low to give its exporters an unfair advantage in the global market.
China has said its financial system could be destabilized if the yuan was allowed to rise too quickly.


Updated : 2021-10-17 11:37 GMT+08:00