Latest Stories

Dollar, euro under pressure in Asia

US dollar, Indonesian rupiah and Chinese renminbi currencies are displayed in the poster of a money exchange shop in Jakarta on June 12, 2013. AFP FILE PHOTO

TOKYO – The dollar and euro came under pressure in Asia Thursday as political turmoil in Portugal and Egypt sent investors to the safe-haven yen, ahead of a European Central bank meeting later in the day.

In afternoon Tokyo trade, the greenback fetched 99.85 yen from 99.86 yen in New York and well down from 100.66 yen in afternoon Tokyo trade on Wednesday.

The euro also slipped to 129.73 yen from 129.93 yen in New York, while it fell to $1.2989 from $1.3010.

“Risk aversion looks set to creep higher as the worrying political situation in Portugal and the elevated unease in Egypt dent market sentiment,” Credit Agricole said.

“Attention will for now turn to Europe where the ECB (European Central Bank) and BoE (Bank of England) will hold their policy meetings today. We expect both of them to remain on hold.”

Portugal’s center-right coalition government was locked in crisis after the resignation of two ministers over its bailout reforms. In Egypt, the army toppled Islamist president Mohamed Morsi, detaining him and his top aides following massive street protests.

The ECB was widely expected to reassure markets that it has no plans to start raising interest rates when its policy-setting committee meets later Thursday.

“The ECB is highly unlikely to respond to the latest bout of financial stress triggered by a political crisis in Portugal, at least for now, and as long as this does not turn into full-blown panic,” Credit Agricole said.

Markets are already on edge over when the US Federal Reserve will start winding down its $85 billion-a-month asset-purchase stimulus program, known as quantitative easing.

The Fed has said it will reel in the scheme, credited with propping up global equity markets, in the coming months if the world’s biggest economy continues to show improvement.

Two sets of US jobs figures on Wednesday — a rise in private-sector hiring and a fall in weekly claims for unemployment benefits — bolstered expectations a closely watched US jobs report for June out on Friday will show modest growth.

In other currency trading, the Australian dollar remained weak, trading at 90.92 US cents from 90.98 cents Wednesday.

The dollar was mixed against other Asia-Pacific currencies.

The greenback sank to Sg$1.2721 from Sg$1.2733 the previous day, to Tw$30.03 from Tw$30.06, to 1,139.80 South Korean won from 1,142.18 won and to 10,000 Indonesian rupiah from 10,040 rupiah.

It stayed almost flat at 43.42 Philippine pesos and at 31.08 Thai baht but firmed to 60.05 Indian rupees from 60.02 rupees.

The Chinese Yuan changed hands at 16.27 yen against 16.38 yen.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Asia , dollar , Euro , Foreign Exchange , Market , Trade

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Militants kill 14 Algerian soldiers in ambush
  • Pope Francis, huge crowd joyously celebrate Easter
  • 4 French journalists freed from Syria captors home
  • Thousands celebrate Easter in Holy Land
  • Transcript reveals confusion over ferry evacuation
  • Sports

  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Warriors beat Clippers in playoff opener
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Marketplace