Dollar weak in Asian trade on Fed concerns

TOKYO, Nov 19, 2007 (AFP) – The dollar was weak in Asian trade Monday in the wake of soft US economic news as investors wonder about the US Federal Reserve’s interest rate policy action next month, dealers said. Trade moved in tight ranges as investors squared positions in shortened trade this week ahead of holidays both in Japan and the United States.

The euro climbed to 1.4686 dollars in Tokyo morning trade from 1.4659, moving towards its record high of 1.4752 dollars reached earlier this month.

The single European currency was flat at 162.87 yen.

Meanwhile the dollar eased to 110.94 yen from 111.07.

The dollar, which has weakened considerably against the euro and other currencies this year except the yen, came under pressure after negative economic reports late last week raised concerns about US growth.

US industrial output fell 0.5 percent in October, marking the biggest decline in production since January.

A separate report also revealed a lower-than-expected flow of international capital into the United States during September.

The US capital flow balance rebounded in September to a surplus of 26.4 billion dollars, compared with a deficit of over 70 billion dollars in t

Notify of
Inline Feedbacks
View all comments