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Dollar steady in Asia as jitters over subprime crisis begin to abate

Dollar steady in Asia as jitters over subprime crisis begin to abate

The U.S. dollar held steady in subdued Asian trade yesterday, propped up by hopes of an easing of the U.S. subprime loan crisis, dealers said.
They said activity was muted amid a dearth of fresh trading leads following the Christmas holiday in overseas markets, dealers said.
The greenback was quoted at 114.12 yen in Tokyo morning trade, slightly higher than its level of 114.00 yen in Tokyo on Tuesday afternoon.
The euro edged up to US$1.4412 from US$1.4391 and to 164.40 yen after 164.06.
The greenback was supported by a continued easing of worries over a global credit squeeze following the recent news that U.S. investment bank Merrill Lynch had won cash injections of up to US$6.2 billion from various investors.
"The dollar is being traded over the 114 yen level thanks to a boost from the Merrill Lynch infusion," said Yuya Koike, a forex dealer at Hachijuni Bank.
Financial markets have seen turbulence for months over concerns about the U.S. subprime mortgage sector, with high-risk customers who were extended loans at the height of the housing boom now struggling to make mortgage payments.
The problems in global credit markets have caused large financial losses at many major U.S. investment banks.
Another batch of earnings reports of major U.S. banks due next month will be closely watched, Hachijuni's Koike said.
"We are watching carefully how much of an impact the subprime problem will have on them - the extent of their losses and what kind of measures they will take," he said.
"Until then, the market will probably stay steady for the year end," he added.


Updated : 2021-06-23 06:51 GMT+08:00