CH: Euro, dollar trade narrowly as investors eye ECB
TOKYO--The euro was mixed in afternoon Asian trade Tuesday as dealers kept their eyes on the European Central Bank for policy moves aimed at tackling the debt crisis, while the dollar held its ground.The eurozone common currency bought US$1.2385 and 96.94 yen, from US$1.2383 and 96.97 yen in New York trade late Monday.
The dollar rose slightly against the Japanese currency, buying 78.26 yen from 78.20 yen in U.S. trade, after the U.S. Department of Labor said last week that the world's biggest economy created more jobs in July than expected.
The euro may lack further upward momentum in the absence of fresh cues, amid continuing guesswork on the path of the eurozone crisis and any near-term policy moves by the European Central Bank, said Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank.
The dollar was mixed against other Asia-Pacific currencies.
It firmed to 55.44 Indian rupees from 55.26 rupees on Friday, to 1,129.10 South Korean won from 1,126.70 won, to 41.80 Philippine pesos from 41.79 pesos, and to NT$29.94 from NT$29.93.
The greenback weakened 9,460.00 Indonesian rupiah from 9,465.00 rupiah, and to 31.47 Thai baht from 31.48 baht, while it was unchanged at S$1.2414.
The Australian dollar rose to US$1.0580 from US$1.0563 while the Chinese yuan bought 12.27 yen against 12.29 yen.
Meanwhile, Australia's central bank held interest rates unchanged at 3.50 percent Tuesday, saying previous cuts were still trickling through the economy despite a softer global outlook.
Currency markets largely shrugged off an intensifying political drama in Japan, with opposition threats to hold up a controversial tax bill having little impact on the yen, dealers said.
The opposition Liberal Democratic Party has threatened a no-confidence motion against Prime Minister Yoshihiko Noda — which may stall a plan to double Japan's sales tax by 2015 aimed at chopping a massive public debt — unless the premier promises to hold snap elections.
