AP: Dollar mixed against euro, yen before release of U.S. housing data
LONDON/TOKYO –– The dollar rose against the euro but fell versus the yen in European dea ls on Friday ahead of key U.S. housing data.
In London morning trading, the euro fell to 1.3429 dollars from 1.3447 dollars late in New York on Thursday.
Against the Japanese currency, the dollar dropped to 101.13 yen from 101.65 yen on Thursday in New York.
In Asian trade on Friday, the dollar slipped against the euro and the yen as traders kept a close watch on unstable stock markets.
The dollar eased to 101.58 yen in Tokyo afternoon trade from 101.65 Thursday in New York. The euro rose to 1.3485 dollars from 1.3447, and to 136.82 yen from 136.70.
Against Asian currencies, the dollar fell to 1.4765 Singapore dollars from 1.4800 on Thursday, and to 9,799 Indonesian rupiah from 9,830. But it rose to 1.348.20 South Korean won from 1,324.40, to 32.56 Taiwan dollars from 32.54, to 48.03 Philippine pesos from 47.90, and to 34.28 Thai baht from 34.27.
In London morning trade on Friday, the euro changed hands at 1.3429 dollars against 1.3447 late Thursday, at 135.92 yen (136.70), 0.7773 pounds (0.7773) and 1.5274 Swiss francs (1.5305).
The dollar stood at 101.13 yen (101.65) and 1.1364 Swiss francs (1.1378).
The pound was at 1.7289 dollars (1.7292).
On the London Bullion Market, the price of gold fell to 797.85 dollars an ounce from 802.50 dollars late on Thursday.
"Today's key U.S. releases are September housing starts and the October preliminary Michigan consumer sentiment index," said Barclays Capital analyst David Woo.
The amount of work beginning on new U.S. residential projects had slid by 6.2 percent in August to a fresh 17-year low, according to official data, in a sign that the punishing correction in the real estate market was not over.
Meanwhile faced with ongoing financial turmoil, investors were turning to U.S. government bonds, seen as safer than the stock market, which has boosted the dollar.
"It has become clear that the dollar has benefited as risk aversion has sent cash flows into U.S. treasuries," said John Rivera, analyst at Forex Capital Markets.
He added that the euro was under pressure against the dollar amid rising expectations of a eurozone interest rate cut.
The European Central Bank has more room than the United States to cut rates, with its key rate at 3.75 percent. The Federal Reserve's federal funds rate stands at 1.50 percent.
Some analysts said the Fed may have to cut rates further to jump-start a slowing U.S. economy. But a rate cut would dampen demand for the dollar and would likely cause it to weaken against the euro.
