US dollar pressured after rally fizzles out
The U.S. dollar was under pressure on Wednesday after more weak U.S. data clouded the timeline for an interest rate hike, while the euro got a lift from hopes for a long-awaited Greek bailout deal.
The greenback slipped to 123.90 yen in Tokyo trading from 124.09 yen in U.S. trading, and well off a more than 12-year high above 125 yen earlier Tuesday in Asia.
The euro t i cked up to US$ 1.1160 and 138.50 yen, against US$1.1152 and 138.39 yen in New York, where the unit jumped on figures that showed rising inflation in the eurozone.
The dollar took a hit from remarks Tuesday by U.S. Fed governor Lael Brainard that a recent run of weak data casts doubt on the strength of the U.S. economy, which clouds expectations for a rate hike later this year.
Fresh data Tuesday showed U.S. factory orders in April fell by a sharper-than-expected 0.4 percent, logging a decline in eight of the last nine months.
The euro benefited from speculation Greece is moving closer to an 11th hour deal with international creditors to avert a default.
Greek Prime Minister Alexis Tsipras will meet European Commission President Jean-Claude Juncker Wednesday for make-orbreak bailout talks, with a deadline looming for Athens to make a critical repayment.
Greece has until Friday to pay 300 million euros owed to the International Monetary Fund.
There are fears that Athens does not have the necessary funds and will default, possibly setting off a chain reaction that could end with a messy exit from the eurozone.
The European Central Bank will hold a policy meeting later Wednesday.
The dollar mostly weakened against other Asia-Pacific currencies.
It fell to SG$ 1.3461 from SG$ 1.3552 on Tuesday, to 1,104.80 South Korean won from 1,114.41 won, and to 33.64 Thai baht from 33.78 baht.
The greenback also slipped to 13,204.00 Indonesian rupiah from 13,236.00 rupiah and to 44.63 Philippine pesos from 44.65 pesos, while it edged up to 63.79 Indian rupees from 63.74 rupees.
The Australian dollar rose to 77.97 U.S. cents from 76.32 cents while the Chinese yuan bought 19.96 yen against 20.11 yen.