Dollar slips in Asia after bad economic news
Dollar slipped against the euro and the yen in Asia as a steady flow of poor US economic data depressed sentiment.
By Agencies |
TOKYO: The dollar slipped against the euro and the yen in Asia on Thursday as a steady flow of poor US economic data depressed sentiment.
The dollar dropped to 95.44 yen in Tokyo morning trade, down from 95.53 in New York late Wednesday. The euro edged up to 1.2891 dollars from 1.2876 and to 122.98 yen from 122.03.
Signs of worsening economic conditions around the world continued to weigh on sentiment.
"It didn't take long for bad news on growth to overwhelm better sentiment from aggressive policy responses aimed at turning economies around," said NAB Capital strategist John Kyriakopoulos.
The greenback has so far proved resilient in the face of poor economic news because it is seen as a relatively safe investment during the financial crisis.
The euro failed to get much of a boost from news that the European Commission was to implement a 200-billion-euro (259 billion dollars) stimulus plan aimed at reviving the recession-hit eurozone economies.
European Central Bank president Jean-Claude Trichet said eurozone policymakers were "ready to cut interest rates" again to boost growth.
In the US, ahead of Thursday's Thanksgiving Holiday the market saw a series of dismal US economic reports, including a 1.0 percent drop in consumer spending in October, the steepest fall since September 2001.
Orders for big-ticket durable goods fell a whopping 6.2 percent in October, a further bad sign for manufacturing, while weekly jobless claims rose 14,000 to a fresh 16-year high.
Markets were watching developments over president-elect Barack Obama's appointment of former Federal Reserve chairman Paul Volcker to lead a new panel of advisers to steer the US economy back to health.
China slashed interest rates Wednesday by 108 basis points, the sharpest cut since the 1997 Asian financial crisis, to boost the faltering economy a little over two weeks after it had unveiled a 586 billion-dollar stimulus package.
"Bold policy moves by China leaves us more confident that Chinese growth might rebound in the second half of 2009," said Kyriakopoulos.
The dollar dropped to 95.44 yen in Tokyo morning trade, down from 95.53 in New York late Wednesday. The euro edged up to 1.2891 dollars from 1.2876 and to 122.98 yen from 122.03.
Signs of worsening economic conditions around the world continued to weigh on sentiment.
"It didn't take long for bad news on growth to overwhelm better sentiment from aggressive policy responses aimed at turning economies around," said NAB Capital strategist John Kyriakopoulos.
The greenback has so far proved resilient in the face of poor economic news because it is seen as a relatively safe investment during the financial crisis.
The euro failed to get much of a boost from news that the European Commission was to implement a 200-billion-euro (259 billion dollars) stimulus plan aimed at reviving the recession-hit eurozone economies.
ADVERTISEMENT
European Central Bank president Jean-Claude Trichet said eurozone policymakers were "ready to cut interest rates" again to boost growth.
In the US, ahead of Thursday's Thanksgiving Holiday the market saw a series of dismal US economic reports, including a 1.0 percent drop in consumer spending in October, the steepest fall since September 2001.
Orders for big-ticket durable goods fell a whopping 6.2 percent in October, a further bad sign for manufacturing, while weekly jobless claims rose 14,000 to a fresh 16-year high.
Markets were watching developments over president-elect Barack Obama's appointment of former Federal Reserve chairman Paul Volcker to lead a new panel of advisers to steer the US economy back to health.
ADVERTISEMENT
China slashed interest rates Wednesday by 108 basis points, the sharpest cut since the 1997 Asian financial crisis, to boost the faltering economy a little over two weeks after it had unveiled a 586 billion-dollar stimulus package.
"Bold policy moves by China leaves us more confident that Chinese growth might rebound in the second half of 2009," said Kyriakopoulos.
ADVERTISEMENT
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
