US dollar pres­sured af­ter rally fiz­zles out

The China Post - - BUSINESS INDEX & -

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.

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