Greenback mixed in Asia

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IOL pic dec18 usd dollars pile

Tokyo - The dollar was mixed in Asia on Thursday ahead of closely watched US jobless claims and housing data which investors will look to for clues about the strength of the world's largest economy.

The greenback bought 104.58 yen in Tokyo midday trade, up slightly from 104.54 yen in New York on Wednesday, while the euro inched higher on the dollar at $1.3547 from $1.3544.

The European single currency fetched 141.70 yen, from 141.59 yen in US trade.

“Markets could gain more momentum amid a slightly heavier data slate scheduled for today, with eurozone PMI (purchasing managers' index) set to improve further while US existing home sales growth will stabilise after three months of declining sales,” Credit Agricole said.

Investors are keeping a close eye on the US figures ahead of the Federal Reserve's policy meeting next week, as speculation grows that the Fed will further reduce its stimulus drive.

Last month the central bank said it would trim its bond-buying scheme by $10 billion a month to $75 billion in January, citing a firming economy.

On Wednesday, the yen staged a short-lived rally after the Bank of Japan (BoJ) said its monetary easing programme was winning the war against deflation and held off unveiling any fresh stimulus measures, which tend to weigh on the currency.

The BoJ's unanimous decision after a two-day meeting was widely expected with analysts predicting the central bank would expand its asset-buying plan later this year to counter the effects of an April sales tax hike. - AFP

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