While expanding a jump witnessed late last week since traders covered short positions ahead of a Federal Reserve monetary policy meet and a Group of 20 summits, the dollar, on Monday, gained in thin conditions.
Following the Bank of England specified Monday that an increased attention on Britain's economic imbalances after the global credit crisis has resulted in fall of sterling's long-run sustainable exchange; the suffering pound ceded further ground.
On Friday, the pound plummeted to as low as $1.6210, from $1.6256, late in New York. It was the same time when it lost over 1.1 percent on fiscal and banking sector worries. The early Asian trade witnessed the euro rising to a five-month high against the pound at 89.29 pence.
Since Japan is closed until Thursday, due to holidays, volumes in Asia were on the lower side.
In the meantime, the euro eased against the U. S. dollar to $1.4688, after it lost nearly 0.2 percent on Friday, though strong support is seen around $1.4640. The euro had a firm hold on yen with around 134.35 yen.
After witnessing a gain of over 0.3% on Friday, the dollar climbed up on the yen to 91.50 yen.
A source said: "Resistance is seen around 91.65 yen, with Ichimoku chart formations showing a clear break of that level, opening the pair to test a target of 92.02 yen."
The dollar .DXY was up 0.18 percent at 76.52, against a basket of currencies, off a one-year low of 76.01 struck on September 17. In spite of this, the index has lost more than 2 percent this month as rumors floated that the U. S. dollar was fast replacing the yen as the preferred funding currency for carry trades.
Pattrick Bennett, Asia forex and rates strategist at SocGen in Hongkong said: "We could see some consolidation after the recent fall in the U. S. dollar. But this is unlikely to lead to a reversal in the broad weakness we have seen in the U. S. dollar as this is a liquidity driven rally and investors are taking on more risks."
Monday 21 September 2009
Forex-Dollar tentatively higher, sterling depressed
0 comments:
Post a Comment