By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) — The dollar edged higher against the euro and most major currencies Monday, reflecting weak risk appetite that also broadly pressured Asian equities and U.S. stock index futures.
The ICE dollar index DXY +0.01% , which measures the greenback’s performance against a basket of six other major currencies, rose to 79.447 during afternoon trading hours in East Asia, up from 79.428 in North America late on Friday.
The euro EURUSD -0.04% eased a little to $1.3194 from $1.3197, unable to recover Friday’s losses that followed weaker-than-expected German retail sales figures and news related to increased jobless claims and a higher deficit target from Spain. Read more on Spain’s new deficit forecast.
“Markets are likely to begin the week in cautious mood on [U.S. President Barack] Obama’s tough speech on the Iran nuclear problem and concern over the Greek [private-sector] debt exchange,” strategists at Credit Agricole wrote in a report.
President Obama said Sunday that he hasn’t ruled out any options in dealing with Iran, while warning that talk of war only helps the government in Teheran by underpinning increasing oil prices. Read full story on Obama’s comments on Iran.
Investors were also looking ahead to this week’s U.S. nonfarm payrolls data to assess whether employment trends extended their improvement into February.
Asian stock markets traded mostly lower on Monday, tracking Friday’s losses on Wall Street and as Dow Jones Industrial Average DJIA -0.02% futures slipped 24 points to 12,944 during Asian trading hours. Read Asia Markets.
In Asian regional news, Chinese Premier Wen Jiabao said the government aims for an economic growth of 7.5% this year, lower than the country’s targeted expansion of 8% in the past several years.
Among other major currencies, the British pound GBPUSD -0.14% was changing hands for $1.5823, down fractionally from $1.5826.
Against the Japanese yen, the dollar USDJPY -0.58% was trading at ÂĄ81.50, falling from ÂĄ81.81 late Friday.
Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.
