US dollar rally takes breather in Asia
The American dollar eased against the yen Friday after a three-day rally driven by upbeat U.S. economic growth and expectations of a Federal Reserve interest rate hike as early as September. In Tokyo, the greenback bought 123.97 yen against 124.15 yen in New York, where it briefly jumped to 124.50 yen.
The euro strengthened to US$1.0945 from US$1.0931 while it edged down to 135.69 yen from 135.70 yen in U.S. trade.
On Thursday, the U.S. Commerce Department said the world’s top economy expanded at an annualized rate of 2.3 percent in the April-June period, the strongest since the third quarter of 2014.
Earlier Friday, another round of soft Japanese inflation data fanned talk of more monetary easing by the country’s central bank.
The internal affairs ministry said household spending fell 2.0 percent year-on-year in June against market expectations for an increase after a rise of 4.8 percent in May.
The dollar was largely higher against other Asia-Pacific currencies.
It rose to 13,487 Indonesian rupiah from 13,470 rupiah on Thursday, to 35.14 Thai baht from 35.08 baht, and to 64.03 Indian rupees from 63.95 rupees. The greenback also went up to SG$1.3727 from SG$1.3706, and to 45.65 Philippine pesos from 45.61 pesos, .
But it sank to 1,168.24 South Korean won from 1,168.93 won.
The Australian dollar slipped to 73.01 U.S. cents from 73.11 U.S. cents, while the Chinese yuan fetched 19.94 yen against 19.95 yen.