TOKYO: The dollar traded marginally lower against the yen in Asia on Thursday, hit by weak US data and a worsening outlook for the world's biggest economy, dealers said.
The dollar was quoted at 88.17 yen in Tokyo morning trade, down from 88.27 yen in New York late Wednesday. The euro fetched 1.2725 dollars and 112.20 yen, down from 1.2743 dollars and 112.62 yen.
Concerns over the US economy grew overnight after government data showed retail sales fell more than expected in June for a second straight month.
The sentiment worsened further after the Federal Reserve revealed minutes from a June meeting of its policy-setting Federal Open Market Committee (FOMC).
They showed that board members cut their growth forecast to 3.0-3.5 percent this year, down from the 3.2-3.7 predicted just months ago, and that it was weighing new measures to keep the faltering US recovery on track.
The minutes may prompt players in Asia to remain bearish on the dollar-yen pair on strengthened expectations that US rates would remain ultra-low for the time being, said Mitsubishi UFJ Trust and Banking forex dealer Hideaki Inoue.
But no sharp currency drops are expected, he said.
"While negative for the dollar-yen, the FOMC minutes weren't outside the range of expectations," he told Dow Jones Newswires.
Pessimists may be gaining force among Fed board members in the face of a sagging housing market, high jobless rate and weak capital, Credit Suisse said in a note.
"The FOMC is expected to take a wait-and-see stance for a while but may seek additional credit easing if it sees a clearer slowdown in the economy from autumn on," it said.
The dollar was quoted at 88.17 yen in Tokyo morning trade, down from 88.27 yen in New York late Wednesday. The euro fetched 1.2725 dollars and 112.20 yen, down from 1.2743 dollars and 112.62 yen.
Concerns over the US economy grew overnight after government data showed retail sales fell more than expected in June for a second straight month.
The sentiment worsened further after the Federal Reserve revealed minutes from a June meeting of its policy-setting Federal Open Market Committee (FOMC).
They showed that board members cut their growth forecast to 3.0-3.5 percent this year, down from the 3.2-3.7 predicted just months ago, and that it was weighing new measures to keep the faltering US recovery on track.
The minutes may prompt players in Asia to remain bearish on the dollar-yen pair on strengthened expectations that US rates would remain ultra-low for the time being, said Mitsubishi UFJ Trust and Banking forex dealer Hideaki Inoue.
But no sharp currency drops are expected, he said.
"While negative for the dollar-yen, the FOMC minutes weren't outside the range of expectations," he told Dow Jones Newswires.
Pessimists may be gaining force among Fed board members in the face of a sagging housing market, high jobless rate and weak capital, Credit Suisse said in a note.
"The FOMC is expected to take a wait-and-see stance for a while but may seek additional credit easing if it sees a clearer slowdown in the economy from autumn on," it said.
0 comments:
Post a Comment