Forex - Dollar steady in Singapore afternoon as markets await FOMC statement |
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Wed, 09 May 2007 08:47
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SINGAPORE (XFN-ASIA) - The US dollar was little changed in afternoon trade here as the market went into a lull before tonight's Federal Open Market Committee meeting, dealers said.At 3.01 pm (0701 GMT), the US dollar was trading at 119.76 yen, slightly down from 119.78 in Sydney trade three hours earlier, while the euro was at 1.3543 usd, barely changed from 1.3544 earlier.Dealers said while the FOMC is likely to keep the Federal funds rate at 5.25 pct, the focus will be on the Fed's accompanying statement and any possible changes to forecasts for growth and inflation, after its previous statement which was interpreted as being less hawkish on inflation than before.'The risk assessment towards growth and inflation is also expected to see little change,' said JPMorgan Chase analysts.'This reflects our assessment that key macro data since that last (FOMC) meeting have largely reported in line with prevailing Fed forecasts.'Ahead of the FOMC and with Bank of England and European Central Bank rate decisions due a day later, there was a modest unwinding of risk positions, putting the dollar under some pressure against its Japanese counterpart, dealers said.The BOE is expected to raise the repo rate by 25 basis points to 5.50 pct, with some suggestions that even a 50 bps hike possible.In contrast, the ECB is expected to keep the minimum refi rate at 3.75 pct but pave the way for a 25 bps hike at the June meeting.Some dealers were also pointing to tonight's congressional joint hearing on currency manipulation and its effects on US businesses and workers as yet another potential event risk hanging over the dollar.There have been speculations that both the yen and the yuan could be in the spotlight at these hearings, they said.'There was little else driving markets, with no data releases before this evening's Fed decision,' UBS AG said in a client note.Singapore 3.01 pm (0701 GMT) vs Sydney 1:54 pm (0354 GMT)US dollaryen 119.76 down from 119.78sfr 1.2166 down from 1.2179Eurousd 1.3543 down from 1.3544yen 162.22 down from 162.23sfr 1.6477 down from 1.6493stg 0.6807 up from 0.6804Sterlingusd 1.9894 down from 1.9905yen 238.25 down from 238.39sfr 2.4205 down from 2.4240Australian dollarusd 0.8290 up from 0.8285stg 0.4167 up from 0.4163yen 99.28 up from 99.250New Zealand dollarusd 0.7364 up from 0.7362singapore@xfn.com
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Forex - Dollar gains ground in Singapore afternoon trade as FOMC result awaited 