Dollar Tad Higher Against Yen, Euro On Steady Stock Performance
03 September 2015 - 4:23PM
Dow Jones News
By Hiroyuki Kachi
TOKYO--The dollar was slightly higher against the yen and the
euro Thursday in Asia trade, with steadier stock market performance
giving a sense of safety to investors after recent China-induced
market selloffs.
At around 0530 GMT, the dollar was at Y120.43, compared with
Y120.33 late Wednesday in New York. The U.S. currency was also
stronger against the euro, which fell to $1.1220 at midday from
$1.1228 late Wednesday.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, was up 0.08% at 88.64.
Earlier in the session, the dollar was higher, tracking
overnight strength on steadier stock markets in the U.S. The dollar
then slid to as low as Y120.31, with the benchmark Nikkei Stock
Index paring earlier gains, but managed to recoup much of its
earlier losses later in the session.
The dollar's upside has been capped below its key technical
resistance of its 200-day moving average, or Y120.80, with no fresh
trading cues in particular other than a mild recovery in the stock
market in Tokyo, a factor causing selling of the Japanese currency
because of its perceived safety.
The benchmark Nikkei Stock Average was up 1.3% at midday after a
three-day losing streak.
Investors have found it difficult to take strong positions ahead
of the closely-watched August U.S. jobs data scheduled for Friday,
which is expected to give more clarity on whether the Federal
Reserve will raise short-term interest rates, potentially later
this month.
But after Chinese stock markets' swings recently, currency
market investors were getting a break as Chinese exchanges were
closed for public holidays on Thursday and Friday.
"It's difficult to move (today or tomorrow) as Chinese markets
are not opening," said Toshihiko Sakai, senior manager of the forex
and financial products trading division at Mitsubishi UFJ Trust and
Banking Corp., adding that investors "are taking a breather for
now."
Given the downward price pressure from recent market selloffs
and a softening in commodity prices, investors are now watching for
comments that European Central Bank chief Mario Draghi will make at
a press conference after the ECB's policy-setting meeting later
today.
"I don't think the ECB will act at this time," said Mr. Sakai.
"But we can't ignore what comments ECB officials will make," about
any debilitating effect on the eurozone economy from China's
slowdown and deflationary pressure.
Speaking at the Federal Reserve Bank of Kansas City's Jackson
Hole conference Saturday, ECB Vice President Vitor Constancio said
the ECB's stimulus policies should help bring eurozone inflation
back toward the target, provided the measures boost demand and
bring economic output in Europe back toward its appropriate
level.
In other currency trade, the euro was at Y135.23 compared with
Y135.09 late Wednesday.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 120.54-55 120.33-34 +0.18 120.70 120.30 +0.69
EUR/USD Euro 1.1219-22 1.1225-28 -0.05 1.1230 1.1206 -7.26
GBP/USD U.K. 1.5294-96 1.5298-300 -0.03 1.5314 1.5289 -1.82
USD/CHF Switzerland 0.9693-97 0.9690-94 +0.03 0.9708 0.9686 -2.49
USD/CAD Canada 1.3265-70 1.3268-73 -0.02 1.3279 1.3260 +14.16
AUD/USD Australia 0.7017-21 0.7036-40 -0.27 0.7062 0.7002 -14.10
NZD/USD New Zealand 0.6343-49 0.6345-51 -0.03 0.6374 0.6340 -18.59
Euro Rate
EUR/JPY Japan 135.23-27 135.07-11 +0.12 135.39 135.03 -6.69
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
September 03, 2015 02:08 ET (06:08 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.