Dollar mixed in Asia ahead of key US economic data
The dollar was mixed in Asian trading on Monday ahead of this week's release of key US data expected to show the world's biggest economy remains weak, dealers said.
By Agencies |
SINGAPORE: The dollar was mixed in Asian trading on Monday ahead of this week's release of key US data expected to show the world's biggest economy remains weak, dealers said.
In afternoon trade, the dollar changed hands at 99.51 yen, up from 98.71 yen in New York late Friday. Markets in Japan were closed Monday for a public holiday and will reopen Tuesday.
The euro traded at 1.2881 dollars, up from 1.2757 dollars late Friday in New York.
"Get ready for a dismal week of data," analysts from Singapore's DBS bank said. "Vehicle sales kick it off (Monday) with another expected drop... if consensus is on the mark," the bank said, adding the market was expecting a month-on-month drop of 4.0 percent in the United States.
Analysts said investors were also watching the outcome of Tuesday's US presidential elections with a decisive victory for Democrat Barack Obama seen as positive for the dollar in the immediate term.
"In the short-term... an Obama victory could be seen as USD positive as it will enable Washington to respond more proactively on crisis management," David Forrester, a currency strategist with Barclays Capital, said.
US polls show Obama well in front of Republican rival John McCain just two days before Americans vote. Meanwhile, the European Central Bank (ECB) is widely expected to cut its main lending rate sharply this week to boost the eurozone economy, analysts said.
"We look for the ECB to reduce rates by 50 basis points at its November meeting, and to follow up with a further 50 basis-point cut no later than January," Bank of America senior economist Holger Schmieding said.
That would take the rate from 3.75 percent at present to 3.25 percent. The 15-nation eurozone economy is slumping heavily, with a key purchasing manager's index falling to a record low in October and business confidence hitting its weakest level since November 1993.
The economy contracted by 0.2 percent in the second quarter. If it shrinks in the third quarter the eurozone will be in a technical recession - classified as two straight quarters of contraction.
Against other Asian units, the dollar rose to 32.855 Taiwan dollars from 32.80 late Friday but fell against the other currencies.
It eased to 1.4657 Singapore dollars from 1.4815 late Friday, to 1,261.2 South Korean won from 1,277, to 48.62 Philippine pesos from 48.96, to 34.95 Thai baht from 35.04 and to 10,775 Indonesian rupiah from 10,850.
In afternoon trade, the dollar changed hands at 99.51 yen, up from 98.71 yen in New York late Friday. Markets in Japan were closed Monday for a public holiday and will reopen Tuesday.
The euro traded at 1.2881 dollars, up from 1.2757 dollars late Friday in New York.
"Get ready for a dismal week of data," analysts from Singapore's DBS bank said. "Vehicle sales kick it off (Monday) with another expected drop... if consensus is on the mark," the bank said, adding the market was expecting a month-on-month drop of 4.0 percent in the United States.
Analysts said investors were also watching the outcome of Tuesday's US presidential elections with a decisive victory for Democrat Barack Obama seen as positive for the dollar in the immediate term.
"In the short-term... an Obama victory could be seen as USD positive as it will enable Washington to respond more proactively on crisis management," David Forrester, a currency strategist with Barclays Capital, said.
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US polls show Obama well in front of Republican rival John McCain just two days before Americans vote. Meanwhile, the European Central Bank (ECB) is widely expected to cut its main lending rate sharply this week to boost the eurozone economy, analysts said.
"We look for the ECB to reduce rates by 50 basis points at its November meeting, and to follow up with a further 50 basis-point cut no later than January," Bank of America senior economist Holger Schmieding said.
That would take the rate from 3.75 percent at present to 3.25 percent. The 15-nation eurozone economy is slumping heavily, with a key purchasing manager's index falling to a record low in October and business confidence hitting its weakest level since November 1993.
The economy contracted by 0.2 percent in the second quarter. If it shrinks in the third quarter the eurozone will be in a technical recession - classified as two straight quarters of contraction.
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Against other Asian units, the dollar rose to 32.855 Taiwan dollars from 32.80 late Friday but fell against the other currencies.
It eased to 1.4657 Singapore dollars from 1.4815 late Friday, to 1,261.2 South Korean won from 1,277, to 48.62 Philippine pesos from 48.96, to 34.95 Thai baht from 35.04 and to 10,775 Indonesian rupiah from 10,850.
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