Euro continues climb against greenback in Asia

The euro extended a rally against the U.S. dollar in Asian trade yesterday as rebounding stock markets reduced the greenback's safe haven appeal, dealers said.
The euro rose to US$1.2665 in Tokyo afternoon trade from 1.2632 in New York late on Tuesday, while declining to 124.71 yen from 125.16. The dollar slipped to 98.49 yen from 98.82.
"The dollar's safe haven image is gradually fading," said Akira Takeuchi, a dealer at Chuo Mitsui Trust Bank.
Traders sold the greenback after U.S. bank Citigroup's upbeat profit outlook sent world stocks soaring.
"A sharp rebound in global stock markets cut safe haven demand for the (U.S.) currency," said NAB Capital analyst John Kyriakopoulos.
But the euro gave back some of its gains after a raft of downbeat economic indicators from China sparked fresh investor jitters.
The market largely ignored a drop in Japanese machinery orders, a key gauge of corporate capital spending, because it was within expectations.
Dealers may try to push the dollar up to 100 yen in the short term, "but when we look at economic conditions in the United States and Japan, the Japanese economy is still much better," Takeuchi said. "So it wouldn't be a surprise if we saw another yen surge in the near future."
Japan suffered a sharper economic contraction that the U.S. in the last quarter of 2008 due to collapsing exports. But its banks and companies are generally in better shape than those of the U.S. and unemployment is lower here.
Investors bought the dollar and the yen after the financial crisis erupted because they were seen as less risky than other currencies.
The dollar was weaker against regional Asian currencies, falling to 1.5395 Singapore dollars from 1.5398 a day earlier, to 1,478.80 South Korean won from 1,510.95 and to 48.32 Philippine pesos from 48.34.
The greenback declined to 11,925 Indonesian rupiah from 12,020, to 35.97 Thai baht from 36.03 and to NT$34.40 from 34.61.

Updated : 2021-04-12 09:49 GMT+08:00