Dollar gets a push from housing data

File photo: Siphiwe Sibeko.

File photo: Siphiwe Sibeko.

Published Apr 23, 2015

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Tokyo - The dollar was mixed on Thursday, with upbeat US housing data briefly lifting the unit above 120 yen, while traders keep an eye on Greece's long-running bailout talks.

In Tokyo, the greenback eased to 119.75 yen from 119.89 yen in New York, but it is still up from 119.54 yen in Tokyo earlier on Wednesday. At one point in the morning it climbed as high as 120.10 yen.

The euro weakened to $1.0707 and 128.40 yen from $1.0725 and 128.58 yen in US trade.

On Wednesday, the National Association of Realtors said US existing-home sales rebounded in March to the fastest pace in 18 months, pointing to solid spring sales this year - and reviving speculation about a Federal Reserve interest rate rise.

The expected hike underlines the divergence between the US central bank's monetary policy and many of its overseas counterparts, including in the eurozone and Japan, which are embarking on a programme of stimulus.

“The dollar got a push higher from firm housing data,” Masato Yanagiya, head of foreign exchange and money trading at Sumitomo Mitsui Banking Corporation, told Bloomberg News.

“Whether the dollar advances further hinges on Greece's situation, which is keeping investors from fully taking on risk.”

The euro is slowly heading lower as Greece battles to raise cash to service its debts, while also haggling with creditors over reforms to its bailout.

With eurozone finance ministers due to meet in Latvia's capital Riga at the end of the week, analysts warn Athens may have only weeks left before defaulting and possibly exiting the eurozone unless it reaches a deal to unlock 7.2 billion euros in remaining bailout loans.

Investors were also awaiting eurozone manufacturing figures later in the day. HSBC said on Thursday that an index of Chinese manufacturing activity fell to a 12-month low in April.

The pound stayed above the $1.50 mark ahead of British elections in just over two weeks, with polls deadlocked.

Sterling traded at $1.5029 in Tokyo, down from $1.5040 in New York, but still up from $1.4931 late on Tuesday.

The dollar mostly firmed against other Asia-Pacific currencies.

It strengthened to 32.41 Thai baht from 32.36 baht on Wednesday, to 44.25 Philippine pesos from 44.21 pesos, and to 12,930.00 Indonesian rupiah from 12,896.20 rupiah.

The US unit inched up to 62.92 Indian rupees from 62.77 rupees, to Tw$31.07 from Tw$31.04, and to 1,080.55 South Korean won from 1,080.20 won.

But it weakened to Sg$1.3456 from Sg$1.3475.

The Australian dollar slipped to 77.50 US cents from 77.69 cents, while the Chinese yuan edged up to 19.35 yen from 19.27 yen.

AFP

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