US dollar inches up; in­vestors eye­ing Fed

The China Post - - BUSINESS INDEX & -

The U.S dollar edged up Tues­day with in­vestors fo­cus­ing on a Fed­eral Re­serve pol­icy meet­ing as ex­pec­ta­tions for a June in­ter­est rate hike fade.

In Tokyo, the green­back inched up 119.11 yen, from 119.05 yen in New York.

The euro lost some gains that were driven by up­beat re­marks from Greek Prime Min­is­ter Alexis Tsipras that he was con­fi­dent tough ne­go­ti­a­tions with his coun­try’s EU-IMF cred­i­tors would re­sult in a deal by early May.

Hopes for a deal were also boosted af­ter Athens reshuf­fled its ne­go­ti­at­ing team fol­low­ing months of fruit­less talks.

The sin­gle cur­rency slipped to US$1.0871 from US$1.0889 and to 129.49 yen from

to 129.64 yen in U.S. trade.

The Fed’s pol­icy set­ting com­mit­tee kicks off a two-day meet­ing later in the day, but more weak U.S. data have al­most put an end to talk of a mid-sum­mer in­ter­est rate hike.

The dollar was un­der­pinned against the yen as the Bank of Ja­pan is ex­pected to re­it­er­ate at its meet­ing on Thurs­day that it is com­mit­ted to con­tin­u­ing its own mas­sive eas­ing cam­paign, although few ex­pect it to an­nounce an ex­pan­sion to the pro­gram un­til later in the year.

The yen hardly moved af­ter Fitch cut its credit rat­ing on Ja­pan by one notch late Mon­day, say­ing Tokyo has not done enough to plug a bud­get gap left by its de­ci­sion to de­lay a sales tax rise.

The U.S. dollar was mixed against other Asia-Pa­cific cur­ren­cies.

It weak­ened to 63.38 In­dian ru­pees from 63.62 ru­pees on Mon­day, with the In­dian cur­rency par­ing some re­cent losses that stemmed from cap­i­tal out­flows.

The dollar also slipped to 1,070.86 South Korean won from 1,074.05 won, and to SG$1.3281 from SG$1.3320.

The green­back rose to 12,991.40 In­done­sian ru­piah from 12,957.10 ru­piah, while it was un­changed at 32.61 Thai baht and it picked up marginally to 44.26 Philip­pine pe­sos from 44.25 pe­sos.

The Aus­tralian dollar rose to 78.68 U.S. cents from 78.18 cents, while the Chi­nese yuan bought 19.19 yen against 19.18 yen.

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