SINGAPORE, Oct. 13 (MNI) - The U.S. dollar ended with a mixed bias in Asia Wednesday, holding a soft tone against the euro after last night's release of the September 21 Federal Open Market Committee meeting minutes, which were deemed dovish. The dollar was however, marginally firmer on the yen as yen crosses gained amid an improvement in risk appetite while regional stock markets also closed higher. Japan's Nikkei 225 index ended the day up 0.16% at 9,403.51 while China's Shanghai Composite Index closed up 0.70% at 2,861.36. At the end of the Asian day, euro-dollar was at $1.3966 while dollar-yen was at Y81.89, both near the upper end of their intraday ranges but not far from where they were at midday here. The euro remained underpinned after the FOMC minutes served to solidify expectations for QE2 at the November 2 meeting and were seen as a dollar negative/euro positive. "The FOMC minutes kept expectations alive that another round of quantitative easing might begin as early as November," said analysts at UBS. Euro-dollar marked a high of $1.3937 overnight in the U.S. and extended those gains this morning in Asia. The pair climbed to $1.3979 in late morning trade, against the early low of $1.3912, aided by euro-sterling demand after the release of the UK's Nationwide Consumer Confidence Index, which fell to 53 in September from 62 in August and the spending index plunged to 85 from 99, with the latter hitting its lowest level since November 2008 and dropping below its long run average of 92. Offers at $1.4000 have since curbed the pair's gains but it remains near the top of the morning range, at $1.3971, compared with $1.3917 traded in late New York dealings overnight. Dollar-yen meanwhile was at Y81.85 as the morning ended here, after a Y81.67 to Y82.01 range, supported by euro-yen's gains to a Y114.49 high from Y113.74. Japanese officials engaged in some fresh jawboning this morning, which kept the pair and other yen crosses supported although the gains have been fairly limited. Finance Minister Yoshihiko Noda and Bank of Japan Governor Masaaki Shirakawa both warned of the threat of the strengthening yen, which traded a 15-year high of Y81.35 against the dollar this week. "Dollar-yen is currently trading around the Y81.90 levels and continued jawboning and risks of intervention look to stay," noted analysts at United Overseas Bank. Shirakawa said in parliamentary testimony this morning that the BOJ is watching the potentially debilitating yen rise with "great interest," vowing to fully use the new scheme to buy various risk assets from banks. "The appreciation of the yen has a big impact on exporter profits and business confidence," he told the Budget Committee of the House of Representatives. iahmad@marketnews.com ** Market News International Singapore Newsroom: 65-6304 5258 **

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