Dollar hovers near two-month high against yen, rupiah weaker
Dollar hovers near two-month high against yen, rupiah weaker
TOKYO (Agencies): The dollar hovered near a two-month high against the yen on expectations U.S. economic growth will keep outpacing that of Japan.
The dollar's gains were stemmed as Japanese exporters took advantage of the U.S. currency's recent rally to sell it for yen to bring profits home. Companies are repatriating earnings before Japan observes its Golden Week holidays Wednesday through Friday, traders said.
"Japanese exporters are selling dollars intermittently," said Takayuki Togawa, a foreign exchange manager at Tokai Bank Ltd. "The dollar could rise, but at best it will reach 110 or 111 yen."
The dollar was recently quoted at 108.01 yen, down from 108.18 yen in late New York trading Friday. It earlier traded as high as 108.47 yen, the U.S. currency's strongest since March 1, and as low as 107.70.
The Australian dollar dropped to a 19 month low on expectation the Federal Reserve will raise rates faster and further than the Reserve Bank, making investments there more attractive.
The Australian dollar is also suffering on concern global growth may not be enough to lift demand for the raw materials Australia exports, especially if the Fed's expected rate increases choke off growth in the world's biggest economy.
"Commodity indexes appear to have peaked, suggesting that global growth may not surprise on the upside," said Peter Jolly, currency strategist at National Australia Bank Ltd., adding that "there is a general lack of interest in Australian assets."
The Australian dollar fell as low as 57.89 U.S. cents, the lowest since September 1998 from 58.39 U.S. cents in late New York trading Friday. It has tumbled nearly 12 percent so far this year. The currency was recently at 58.05 cents.
The New Zealand dollar was little changed at 48.49 U.S. cents.
Markets in Hong Kong, the Philippines, South Korea, Singapore, Malaysia, China, and Thailand were closed for holiday.
The Indonesian rupiah ended weaker Monday against the dollar in thin trading dulled by holidays in offshore markets.
The rupiah failed to get much lift from official trade and inflation data released Monday, after earlier falling through a support level of Rp 8,000 to the dollar.
At the close of Asian trading, the dollar was trading at Rp 8,030, up from Rp 7,925 late Friday.
The dollar broke convincingly early Monday through Rp 8,000, only to meet some resistance at Rp 8,050, dealers said.
The Indonesian state statistics bureau said Monday that non- oil and gas exports grew 30 percent in the first quarter of 2000 on year, while inflation grew by 0.56 percent in April from March.
However, the rebound in exports and a corresponding jump in imports lent little support to the rupiah, dealers said.
The dollar is expected to trade Tuesday between Rp 7,950 and Rp 8,050.