Forex - US dollar mixed in Sydney morning trade after overnight falls |
|
|
|
Published
:
Wed, 17 Oct 2007 01:57
|
SYDNEY (Thomson Financial) - The US dollar was mixed against other major currencies in midmorning trade Wednesday after falling overnight as investors aggressively unwound yen-funded carry trades in response to a US Treasury report that indicates foreigners withdrew their money from the US in a big way in August.At 10.18 am (0018 GMT), the dollar was buying 116.87 yen, compared to 116.70 yen in late trade in New York, where it fell as low as 116.45 yen.The euro was at 1.4177 dollars, up from 1.4170 dollars in New York, where it hit a high of 1.4227 dollars.Data from the Treasury International Capital showed net foreign long-term securities purchases were minus 69.3 billion dollars in August as foreigners pulled their money out of US dollars, bonds and shares. This followed three months of declining capital inflows and rattled already nervous investors.Other factors that weighed on the greenback Tuesday were losses on Wall Street, surging oil prices and warnings from Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson that the housing slump poses a significant risk to the world's largest economy.The turnaround in fortunes on global financial markets has been sudden and should not last long, said John Noonan, an analyst at Thomson IFR.'At this stage, the move looks corrective rather than a major sea change, but it is dangerous to try and catch a falling knife,' Noonan said.The Australian dollar plunged to 88.23 US cents overnight after hitting a 23-year high of 90.79cents earlier in the week as jittery investors unwound carry trades. The Aussie recovered some ground later in the session to close at around 88.65 cents.Weakness in global equity markets will keep the Aussie 'on the back foot', said John Kyriakopoulos, head of currency strategy at National Australia Bank.'The fall below the previous 18-year high of 88.71 US cents has caused some technical damage and a close below here today would leave us cautious towards the Australian dollar in coming days,' Kyriakopoulos said.Sydney at 10.18 am (0018 GMT)US dollar116.87 yen1.1819 sfrEuro1.4177 usd165.705 yen1.6763 sfr0.6979 stgSterling2.0314 usd237.412 yen2.40187 sfrAustralian dollar0.8889 usd0.4368 stg103.93 yenNew Zealand dollar0.7473 usdallison.jackson@thomson.combhx/jm/msCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
|
|
Print this Story
Taiwan says inappropriate to use forex reserves to set up sovereign wealth fund 