WSJ:Dollar Stabilizes Vs Yen, Euro; Aussie Down After RBA
By Kosaku Narioka
The dollar stabilized against the yen and the euro Tuesday in Asia as investors awaited further signs of a U.S. economic recovery and mulled the potential implications that a rebound could bring.
The greenback was at Y99.73 as of 0450 GMT from Y99.68 late Monday in New York, according to EBS. The euro was at $1.3058 from $1.3065. The Wall Street Journal Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at 75.022 from 74.914.
While strong U.S. economic indicators in theory support the dollar as yields on Treasurys rise, recent solid data have produced the opposite effect by raising fears that the Federal Reserve will start to wind down its monetary stimulus program, prompting stock selloffs.
Meanwhile, the Reserve Bank of Australia Tuesday left its benchmark cash-rate target at 2.75% for the second month in the wake of the Australian dollar's slump to a nearly four-year low.
"The Australian dollar has depreciated by around 10% since early April, although it remains at a high level," RBA Gov. Glenn Stevens said in a statement. "It is possible that the exchange rate will depreciate further over time, which would help to foster a rebalancing of growth in the economy."
The Australian dollar was at $0.9183 from $0.9240.
Ahead of U.S. non-farm payrolls data due Friday, market participants will be closely watching U.S. weekly jobless claims figures due Wednesday. The Bank of England and the European Central Bank will also announce their latest decisions monetary policy on Thursday.
"Because the euro's strength isn't great for (EU's export-driven) economy, there may be comments about further easing," said Akira Moroga, manager of forex products group at Aozora Bank. Still, he said the trade surplus in the euro-zone means the ground for the common currency appears solid for now.
The common currency was at Y130.19 from Y130.16. The U.K. pound was at $1.5204 from $1.5215. The dollar was at CHF0.9464 from CHF0.9453.
Interbank Foreign Exchange Rates At 00:50 ET / 0450 GMT
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