Friday, 17 July 2015 17:26
TOKYO: The dollar was firm against the yen and euro on Friday as fears about Greece’s debt and a rout on Chinese stock markets eased, while investors bet on a near-term US interest rate hike.
In Tokyo afternoon trading, the greenback bought 124.05 yen, slightly down from 124.14 yen in New York, but still up from 123.90 yen Thursday in Asia.
The euro ticked up to $ 1.0893 yen, from $ 1.0875 in US trade, where it fell at one stage to $ 1.0856, its lowest level in seven weeks.
The single currency fetched 135.14 yen against 135.00 yen.
“Good data, receding risks from China and Greece and Yellen’s testimony are underpinning the dollar,” said Kumiko Ishikawa, analyst at Gaitame.com Research Institute.
Fed chief Janet Yellen said this week that she expects interest rates to rise by the year’s end as the world’s top economy gets back into gear.
“Yellen’s testimony turned out to be an event to confirm a rate hike this year, keeping the dollar buying trend,” said Yasuhiro Kaizaki, vice president for global markets at Sumitomo Mitsui Trust Bank.
On Thursday, the European Central Bank increased its lifeline to Greece, meaning its banks can open on Monday for the first time in three weeks, while ECB head, Mario Draghi, threw his weight behind IMF calls for debt relief for Athens.
The European Commission, the bloc’s executive arm, also decided in theory to grant Greece a three-month 7.0-billion-euro bridging loan to keep its economy afloat until its new bailout is ratified.
And eurozone ministers agreed Thursday to start bailout talks, hours after lawmakers in Athens gave the OK to tough reforms, taxes, pensions and labour rules demanded by creditors.
The dollar mostly weakened against other Asia-Pacific currencies.
It slipped to 1,146.93 South Korean won from 1,149.59 won on Thursday, to Sg$ 1.3666 from Sg$ 1.3681, to 63.48 Indian rupees from 63.50 rupees and to 13,343 Indonesian rupiah from 13,361 rupiah.
The US unit was also lower at 45.15 Philippine pesos against 45.26 pesos and 34.18 Thai baht from 34.22 baht while it rose to Tw$ 31.12 from Tw$ 31.09.
The Australian dollar bought 74.17 US cents from 73.59 cents, while the Chinese yuan edged up to 19.97 yen from 19.95 yen.
