Greenback takes a hit on global growth jitters
The U.S. dollar was under pressure against the yen and euro on Friday as confidence in the global economy headed south and hopes for a September U.S. interest rate hike faded.
The greenback slipped to 123.02 yen, down from 123.38 yen in New York and well down from rates above the 124 yen level seen earlier Thursday in Tokyo.
The euro also benefited from market jitters, with the 19-nation unit quoted at US$1.1279 and 138.74 yen, up from US$1.1241 and US$138.69 U.S. trading.
Market sentiment has dived as concerns about the global economy soared making the yen, seen as a safe-haven in times of uncertainty or turmoil, more attractive.
The U.S. Federal Reserve cited China as a red flag for global growth in minutes of its last meeting, which lowered expectations the central bank could lift rates as early as next month. A rate rise would be a plus for the U.S. dollar.
In other trading, the U.S. dollar was mostly higher against other Asia- Pacific currencies, which have taken a beating since the yuan devaluation.
It strengthened to 46.79 Philippine pesos from 46.34 pesos on Thursday, to 1,194.82 South Korean won from 1,185.17 won, and to 13,936 Indonesian rupiah from 13,845 rupiah.
The U.S. dollar also rose
to SG$ 1.4087 from SG$ 1.4026, and to 65.82 Indian rupees from 65.19 rupees.
The Thai baht weakened to a fresh six-year low of 35.70 against the U.S. dollar from 35.54 a day before, as the deadly bombing in Bangkok threatens Thailand’s crucial tourism industry.
The Australian dollar slipped to 73.05 U.S. cents from 73.45 cents, while the Chinese yuan fetched 19.19 yen against 19.36 yen.