TOKYO: The dollar slipped in Asia yesterday as poor US data weighed, while the euro was mixed after an upbeat German business climate index propelled it higher in New York.
In late morning Tokyo trade, the greenback weakened to 98.81 yen from 99.24 yen in New York on Thursday and above the 100 yen mark this week.
The euro was stronger on the dollar at $1.3283 from $1.3277, while the single currency dipped to 131.25 yen from 131.75 yen in US trading.
The dollar has been under pressure as a jump in jobless claims and weak demand for durable goods, such as cars and washing machines, dented hopes the world’s largest economy had cemented a recovery.
That, in turn, threw into question the timing of the US Federal Reserve’s plan to roll back its massive stimulus programme. The bank holds a policy meeting next week. Comments from Fed officials, including its chief Ben Bernanke, have kept investors guessing about a roll back on the quantitative easing scheme, which it has said would depend on the strength of fresh economic data.
“Markets are still trying to digest what Bernanke has said,” Ken Jakubzak, founder of KMJ Capital, told Dow Jones Newswires.
“If they really do start to reduce [bond purchases] in September, then the dollar will get some support.” AFP
