MW: Dollar regains ground but stays in recent ranges
Greenback strengthens against the euro and Japanese yen
TOKYO (MarketWatch) — The U.S. dollar edged higher against most of its currency rivals Tuesday in Asia’s afternoon trading, set to recoup some of the losses suffered a day earlier, but stayed in recent ranges ahead of the meeting of Group of 20 nations’ finance ministers later this week.
The dollar index (DXY 77.42, +0.48, +0.63%) , a measure of the U.S. unit against a basket of major global currencies, rose to 77.230 from 76.922 late Monday.
Japan’s Finance Minister Yoshihiko Noda said Tuesday that G-20 finance ministers are likely to discuss currency issues at their meeting, according to Dow Jones Newswires.
G-20 ministers will gather in South Korea Friday.
Noda said last week that Japan will take “decisive” steps if necessary to curb the yen’s strength.
Against the yen, the dollar (USDYEN 81.4500, +0.2000, +0.2462%) climbed to ¥81.34, from ¥81.23 late Monday in North American trading. Last week, the greenback fell below ¥81, its weakest level in 15 years. See live currency data and tools.
The dollar found support after U.S. Treasury Secretary Timothy Geithner on Monday said the U.S. won’t devalue its currency. Read Geithner’s comments on the yuan.
But as overall strength in the yen remained, major Japanese manufacturers said they plan to lower their assumed exchange rates for the yen relative to the dollar for the second half of the fiscal year through March, according to the Nikkei business daily.
Meanwhile, the euro (EURUSD 1.3900, -0.0045, -0.3227%) slipped to $1.3933, compared with $1.3999 late Friday in North American trading.
“While the [euro] is likely to benefit from the general [U.S. dollar] weakness in the near term, we believe the euro-area peripheral issues are unlikely to be solved soon, and the fiscal/debt-related risk premium will persist and continue to weigh on the [euro],” Yuki Sakasai, an analyst at Barclays Capital, said in a note to clients.
The greenback had weakened against the euro Monday and pared gains against the Canadian and British currencies after reports gave a muddy picture of the U.S. economic outlook. See Monday’s currencies column.
