Wednesday, 29 July 2015 11:00
TOKYO: The dollar eased Wednesday as traders remained on edge after a China stock market plunge this week and as the Federal Reserve wound up a two-day meeting, with hopes of some guidance on its plans for raising interest rates.
In Tokyo the dollar was at 123.43 yen, against 123.56 yen in New York late Tuesday.
The euro changed hands at $ 1.1060 and 136.73 yen compared with $ 1.1058 and 136.64 yen in US trade.
The greenback came under pressure this week as a more than 11 percent fall in Chinese stocks in two days renewed fears of another rout in the markets of the world’s number two economy, sending investors running for safer investments.
“Yen-buying sentiment can appear from time-to-time a risk-averting option,” said Shinya Harui, a forex analyst at Nomura Securities.
The yen is considered a safe investment in times of uncertainty.
“But the yen’s further gain is unlikely as a strong dollar is still a long-term direction,” Harui said.
“Trading is also rangebound as players refrain from taking positions ahead of a Fed statement and GDP figures,” he added.
While the Fed’s policy committee is not expected to announce a rate cut Wednesday, dealers will pore over its latest statement to see if it gives any clues about when it will begin a lift-off, with expectations for either September of December.
The US government is also scheduled to release economic growth figures for April-June on Thursday.
