Greenback weaker in Asian trade

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Published Aug 28, 2014

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Tokyo - The dollar slipped against other major currencies in Asia on Thursday as investors await revised US second-quarter growth data.

In Tokyo morning trade, the greenback weakened to 103.77 yen, from 103.86 yen in New York.

The euro turned up to $1.3204 from $1.3195, while it bought 137.11 yen against 137.05 yen in US trading.

Many investors were sticking to the sidelines ahead of the April-June figures due later in the day, which will give fresh clues about the state of the world's number one economy.

The dollar rallied when preliminary data in July showed 4.0 percent growth after the sharp contraction during the previous three months.

“The most recent data suggest that smaller positive contributions from consumption and inventories will be offset by a smaller negative contribution from net trade to leave growth broadly unchanged,” Capital Economics said in a note.

“The latest surveys imply that the economy will perform well in both the third and fourth quarters of this year,” it added

The common European currency crept higher after Germany's finance minister on Wednesday downplayed the chances of the European Central Bank (ECB) unveiling new measures to stave off deflation at a policy meeting next week.

Wolfgang Schaeuble said markets “over-interpreted” remarks by ECB chief Mario Draghi when he said last week the bank “will use all available instruments needed to ensure price stability over the medium term”.

The bank has already launched unprecedented measures to counter an economic downturn and weak inflation in the 18-member bloc. - AFP

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