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Greenback rangebound ahead of U.S. bank speech

Greenback rangebound ahead of U.S. bank speech

The U.S. dollar was rangebound in cautious Asian trade yesterday as investors waited for a speech by the U.S. central bank chief after recent volatility over the housing sector, dealers said.
The U.S. dollar rose to 116.17 yen in Tokyo afternoon trade from 115.86 in New York late Thursday.
The euro edged up to US$1.3665 from US$1.3628 and to 158.77 yen from 157.90.
Foreign exchange trading has been volatile over the last two weeks, closely following on the heels of Wall Street amid concerns over the U.S. "subprime" sector of housing loans to customers with patchy credit histories.
Japan saw a flurry of economic data in the morning, but the investors hardly responded, dealers said.
"The focus of the market sentiment is not really on the domestic economic data," said Kosuke Hanao, a forex analyst of HSBC.
"The focus really is on what actions the United States will take over the subprime issue, especially before the three-day weekend," Hanao added.
Monday is the Labor Day holiday in the United States, giving Wall Street a long weekend to digest remarks by the Fed scheduled for Friday in the U.S.
"We are watching how much impact the subprime problem will have on the real U.S. economy," Hanao said.
Sumitomo's Matsumoto said expectations were declining that Japan's central bank would raise interest rates next month due to the volatility in the markets.
"The Bank of Japan is unlikely to go for the next rate hike in September under the current condition," he said.


Updated : 2020-12-02 12:33 GMT+08:00