Dollar edges lower in Asian trade
TOKYO – The dollar edged lower in thin Asian trade on Thursday as many investors kept to the sidelines with few trading cues to move the market.
The greenback fetched 96.50 yen in Tokyo midday trading from 96.64 yen in New York Thursday, while the euro changed hands at 129.02 yen compared with 128.25 yen in US deals.
The European single currency rose to $1.3378 from $1.3334.
“Many players were on the sidelines due to lack of fresh trading factors as the market appears in a summer vacation mode,” said Yosuke Hosokawa, a dealer at Sumitomo Mitsui Trust Bank.
“There is room for the dollar’s downside risk, but falling below 93 yen is not a likely scenario,” Hosokawa added.
The dollar has been on a downward slide since mid-July as some investors have questioned the timetable for the Federal Reserve to scale back its aggressive bond-buying program.
The central bank has said a firm recovery in the world’s biggest economy was key to reining in its quantitative easing program.
A pull-back on the Fed stimulus would shrink the number of dollars in the financial system, boosting demand and the greenback’s value.
The euro, meanwhile, won support in Asian trade after Germany reported a bounce in its trade surplus in June, pointing to a pickup in exports from the recession-hit eurozone’s largest economy.