Dollar Falls in Asia
TOKYO (AP) - The dollar dropped sharply against the yen in Asia Tuesday on vague talk that China's central bank might soon raise interest rates.
The dollar fell to 107.75 yen from as high as 108.20 yen earlier in the day.
The People's Bank of China quickly moved to squelch such talk by saying its policy won't be adjusted. It did not comment directly on the rumor. A Chinese rate hike usually boosts the value of other Asian currencies, including the Japanese yen.
Some traders said a Wall Street Journal article saying that Lehman Brothers may be facing much-larger-than-expected write-downs also dragged on the dollar.
But they also said the market is now awaiting U.S. economic data such as housing starts and consumer price index data for January set for release later in the week to get a better sense of direction for the dollar.
Keiichi Iguchi, a dealer at Resona Bank, said that if the U.S. data are positive, the dollar could rise to above 109 yen.
"It's still necessary to watch how a U.S. economic slowdown affects the European economy and how the European Central Bank will react," he said.
The dollar was also mostly lower against regional currencies, falling to 943.8 South Korean won from 945.4 the previous day, and to 9,145 Indonesian rupiah from 9,161.
- 1 HK typhoon alert No.1 issued
- 2 HSBC reports 1H fall in profit 29 percent
- 3 Bryant scores 19, helps US beat Russia in tuneup
- 4 Actor Morgan Freeman is injured in car accident
- 5 Jolie-Pitt baby twins photos online
- 6 Christina Applegate treated for breast cancer
- 7 Paris Hilton's mom takes offense at McCain's humor
|
- 1 Financials drag on market; Dow falls more than 240
- 2 Hong Kong stocks down 1178 points
- 3 Asian markets plunge; Nikkei sinks nearly 10 pct
- 4 Snowballing sell-off drives Dow down 679 points
- 5 World markets caught in Wall Street downdraft
- 6 Rate cut loosens credit only at the margins
- 7 Hong Kong stocks rebound on rate cuts
|
|
