Dollar is steady in Asia despite weak US GDP statistics
The U. S. dollar was steady Monday despite a first-quarter contraction in the U.S. economy as investors look for clues to a pickup that would justify an interest rate rise this year.
In Tokyo afternoon trading, the greenback bought 124.08 yen, slightly down from 124.12 yen in New York on Friday, and also off the 12-year high of 124.46 yen touched last week.
Investors are now waiting for U.S. jobs data for a clue about the state of the world’s top economy, after revised data Friday showed it contracted 0.7 percent in the first three months of the year.
“Traders will look at this week’s data with a little bit of caution, but the main thing is, if the euro is losing ground, naturally you find the U.S. dollar tends to benefit from that,” Stan Shamu, a markets strategist IG Ltd., told Bloomberg News.
“Traders will probably stay long heading into payrolls data.”
The euro weakened to US$1.0960 and 135.94 yen, from US$1.0991 and 136.42 yen in New York, as Greece’s bailout talks drag on with the cash- strapped country facing a debt repayment deadline on June 5.
Time is running out for Greece to reach a deal with its international creditors to unlock 7.2. billion euros in bailout cash. There are fears that if it defaults the country could end up leaving the eurozone.
Athens’ debt crisis dominated a three-day meeting of Group of Seven finance ministers in Germany, where Greece and its European partners came under pressure to end a crisis that has rattled the global economy.
The U. S. dollar was mixed against other Asia-Pacific currencies.
It weakened to 63.63 Indian rupees from 63.75 rupees, to 13,208.00 Indonesian rupiah from 13,216.00 rupiah, to 33.66 Thai baht from 33.69 baht, and to 44.53 Philippine pesos from 44.56 pesos.
The greenback r ose to 1,109.14 South Korean won from 1,107.05 won, to SG$1.3494 from SG$1.3468.
The Australian dollar slipped to 76.60 U.S. cents from 76.69 cents while the Chinese yuan bought 20.01 yen, against 19.94 yen.