Dollar Flat Against Yen, Euro as Markets Brace for Policy Meetings, Data
November 30 2015 - 12:57AM
Dow Jones News
By Hiroyuki Kachi
The dollar was flat against the yen and the euro in rangebound
Asia trade Monday, as many investors refrained from taking strong
positions ahead of potentially market-moving events later this
week.
At around 0450 GMT, the greenback was at Y122.72, compared with
Y122.86 late Friday in New York, amid a mixture of buying and
selling by Japanese companies related to end-of-month commercial
trade settlement.
The U.S. currency remained steady amid expectations that the
Federal Reserve will start raising short-term rates at its
policy-setting meeting next month.
But investors largely remained on the sidelines ahead of the key
events later this week, such as a European Central Bank policy
meeting scheduled for Thursday and U.S. jobs data Friday.
"Ahead of a variety of events later this week, investors will
likely stop making moves," said FPG Securities chief executive Koji
Fukaya.
"Focus is on the ECB event and the jobs data," said Mr.
Fukaya.
Investors showed muted reaction to speeches by Bank of Japan
Gov. Haruhiko Kuroda in Nagoya, central Japan.
Mr. Kuroda said wage growth will remain slow if the central bank
doesn't try to meet its price stability target of 2% soon,
countering the view that the bank may avoid escalating its
reflation policy until salary gains accelerate.
But Mr. Fukaya said the dollar may hover around Y123 for the
remainder of the year, noting that investors have already shifted
their focus to what will happen after the possible rate increase by
the U.S. Fed. In addition, the yield on 10-year U.S. Treasuries,
which often reflects not only rate increases but also broader
economic fundamentals such as growth and inflation, is now at
around 2.2%-2.3%, below 2.5% in June when the dollar hit its year
high of Y125.86.
Amid widespread speculation that the ECB would expand monetary
easing at the Thursday policy meeting, the U.S. currency was
slightly stronger against the euro, which declined to $1.0587
midday from $1.0594 late Friday. The common currency was at Y129.93
from Y130.11.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, was unchanged at 90.82.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 122.73-74 122.81-82 -0.07 122.82 122.69 +2.51
EUR/USD Euro 1.0586-89 1.0592-95 -0.06 1.0594 1.0571 -12.49
GBP/USD U.K. 1.5028-30 1.5032-34 -0.03 1.5035 1.5016 -3.53
USD/CHF Switzerland 1.0306-10 1.0300-04 +0.06 1.0315 1.0302 +3.67
USD/CAD Canada 1.3379-84 1.3371-76 +0.06 1.3389 1.3374 +15.14
AUD/USD Australia 0.7186-90 0.7192-96 -0.08 0.7195 0.7171 -12.03
NZD/USD New Zealand 0.6541-47 0.6531-37 +0.15 0.6546 0.6514 -16.05
Euro Rate
EUR/JPY Japan 129.91-95 130.06-10 -0.12 130.08 129.81 -10.36
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
November 30, 2015 00:42 ET (05:42 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.