Wednesday, 05 August 2015 11:15
TOKYO: The dollar rose against the euro and yen in Asia Wednesday, adding to gains driven by a US Federal Reserve official’s support for a September interest rate hike.
In Tokyo, the dollar fetched 124.40 yen, against 124.36 yen in New York and 123.98 yen in Tokyo earlier Tuesday.
The euro edged down to $ 1.0864 and 135.10 yen from $ 1.0882 and 135.32 yen in US trade.
On Tuesday, the dollar advanced against other major currencies after Fed Reserve Bank of Atlanta President Dennis Lockhart told The Wall Street Journal that he supports lifting rates in September barring an unexpected downturn in the world’s top economy.
Lockhart told the paper it “will take a significant deterioration in the economic picture for me to be disinclined to move ahead”.
Currency traders are keeping a close eye on US economic data as they try to gauge the timeline for a rate hike — a plus for the dollar — which is widely expected in September or December.
Jobs data at the end of the week are now in focus.
“Our call all year has been for the Fed to start a very gradual rate hike cycle from September,” Callum Henderson, the global head of foreign-exchange research at Standard Chartered, told Bloomberg News.
“The Lockhart comments added to dollar gains by putting this prospect back on the market’s radar.”
The dollar was mostly stronger against other Asia-Pacific currencies.
It rose to Sg$ 1.3857 from Sg$ 1.3795 on Tuesday, to 45.75 Philippine pesos from 45.73 pesos, to Tw$ 31.66 from Tw$ 31.65 and to 1,172.63 South Korean won from 1,169.45 won.
The greenback inched up to 13,498 Indonesian rupiah from 13,495 rupiah, while it shipped to 35.09 from 35.12 Thai baht and to 63.86 Indian rupees from 63.98 rupees.
The Australian dollar firmed to 73.54 US cents from 73.28 cents, while the Chinese yuan fetched 20.05 yen against 19.97 yen.
