By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar edged higher in Asian trading hours Monday, amid doubts that a decisive plan to help Europe contain its debt woes will be announced at one of two upcoming summits.
The dollar index DXY -0.16% , which measures the greenback against a basket of six other currencies, traded at 76.721, up from 76.645 in late North American trading on Friday.
Strategists at Credit Agricole said Monday that the U.S. dollar will likely gain more ground in the near term, although the pace may not be startling ahead of meetings of the European Council on Oct. 23 and a Group of 20 meeting on Nov. 3 to discuss Europe’s troubles.
The euro made sharp gains on Friday ahead of a weekend meeting of the Group of 20 finance ministers and central bankers that saw top European officials pledge to reveal a plan by Oct. 23 to try to solve Europe’s troubles.
The euro EURUSD +0.21% slipped to $1.3863 Monday, down from $1.3875 in late North American trading on Friday.
Europe’s debt crisis has been rumbling on for nearly two years now, and the Credit Agricole strategists said that optimism for a grand plan for Europe will likely be tested in the run-up to the summits.
Such a scenario would likely benefit the safe-haven U.S. dollar to some degree, they said.
Barclays Capital currency strategists said: “We need to see bold measures by the European authorities to at least match the market expectations that have been built in anticipation of them.”
They said that the details around any announced measures will be crucial, and “the scope for disappointment remains.”
The British pound GBPUSD -0.03% fell to $1.5803 Monday from $1.5818 late Friday.
The dollar USDJPY +0.38% bought 77.14 yen, easing from ¥77.25 in late trading Friday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
