CH: Greenback weak in Asia on stimulus speculation
TOKYO--The dollar was weak in Asian trade Thursday with the unit under pressure after minutes from the U.S. Federal Reserve's latest policy meeting showed the central bank tilting toward fresh stimulus measures.The euro bought US$1.2540 and 98.48 in Tokyo afternoon trade against US$1.2522 and 98.34 yen late Wednesday in New York.
The dollar bought 78.51 yen against 78.53 yen in U.S. trade.
The greenback was weighed by speculation of further Fed easing after the meeting minutes showed policymakers could act “fairly soon” in the absence of rosy economic data for the world's biggest economy.
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial strengthening in the pace of the recovery,” the minutes of the Federal Open Market Committee meeting said.
That was viewed by many to be the clearest sign yet that the central bank planned to ramp up bond buying or other measures to boost growth.
“The minutes were surprisingly dovish,” said Dai Sato, vice president of the currency division at Mizuho Corporate Bank.
Markets would now turn their focus to figures to be released on new U.S. home sales, durable goods and weekly jobless claims, dealers said.
If the data were strong, speculation of further stimulus may recede and lessen downward pressure on the dollar, said Junichi Ishikawa, forex strategist at IG Market Securities in Tokyo.
