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Tuesday, May 24, 2022

Dollar edges down ahead of Fed meeting

Dollar edges down ahead of Fed meetingTOKYO: The dollar was under pressure Monday following weak US housing figures, as traders await the start of the Federal Reserve’s latest policy meeting.

In Tokyo afternoon trading, the greenback fetched 123.47 yen, down from 123.81 yen in New York late Friday.

The euro changed hands at $ 1.1006 and 135.91 yen, against $ 1.0977 and 135.89 yen in US trade.

Data on Friday showed sales of new single-family homes in the US fell in June and May sales were much lower than previously reported — disappointing news that followed a lacklustre Chinese manufacturing report.

Currency traders are now focusing on the Fed’s two-day policy meeting that starts Tuesday.

While the central bank is not expected to raise interest rates immediately, dealers are hoping for some forward guidance, with most analysts tipping a rise in either September or December

“The Tokyo market has taken over the dollar’s selling sentiment from New York late last week,” said Yosuke Hosokawa, head of the forex sales team at Sumitomo Mitsui Trust Bank.

“Players can’t help but stay on the sidelines until the Fed makes an announcement,” Hosokawa said.

“Cautious trading is expected to continue for now.”

The dollar was mixed against other Asia-Pacific currencies, after hitting fresh multi-year highs against some emerging market units on Friday.

It weakened to 13,460 Indonesian rupiah from a 17-year-high of 13,465 rupiah, to 34.87 Thai baht from a six-year high of 34.90 baht, to 1,167.00 South Korean won from 1,167.87 won, and to Sg$ 1.3701 from Sg$ 1.3725.

The greenback rose to a fresh five-year high of 45.55 Philippine pesos on Monday from 45.51 pesos last week, to 64.05 Indian rupees from 63.91 rupees and to Tw$ 31.48 from Tw$ 31.42.

The Australian dollar declined to 72.86 US cents from 72.95 cents, while the Chinese yuan fetched 19.88 yen against 19.96 yen.

Copyright AFP (Agence France-Presse), 2015

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