Dollar edges up amid speculation about US economy
TOKYO – The dollar edged up on Monday as trading remained cautious amid speculation about the timing of an end to massive US stimulus plans.
The dollar gained to 98.49 yen in morning Asian trade from 98.16 late Friday in New York.
The euro bought $1.3202, down from $1.3218, while the single currency was trading at 130.09 yen against 129.82 yen.
US financial markets are closed Monday for the Labor Day federal holiday.
“The market is paying more attention to US economic indicators than Syria,” said Daisuke Karakama, market economist at Mizuho Bank’s forex division.
“Especially, the market is focusing on US jobless figures to be released on Friday, ahead of the upcoming FOMC meeting,” Karakama said.
“Nervous trading is expected during the week as we need to pay attention to a lot of things,” he added.
US consumer spending sputtered in July amid weak income growth, according to Commerce Department data released Friday.
The new data cast a cloud over speculation that the Federal Reserve will begin to reduce its $85 billion-a-month bond-buying programme this year.
Concerns about the strength of the major economic indicators in the third quarter could convince the Fed to delay the move, which could come as soon as its September 17-18 monetary policy meeting.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
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