Forex - US dollar softer in Singapore afternoon trade as FOMC meeting looms |
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Tue, 20 Mar 2007 09:04
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SINGAPORE (XFN-ASIA) - The US dollar had a softer tone against the yen and euro in afternoon trading here, with the market's attention locked on the start later today of the two-day meeting of the US Federal Open Market Committee, dealers said.At 3.35 pm here (0735 GMT), the dollar was at 117.70 yen, down from 117.82 yen in Sydney nearly 4-1/2 hours earlier. The euro was at 1.3297 usd, up from 1.3288 usd in Sydney.The FOMC is widely expected to keep US interest rates steady, and the market's focus will be on the statement that will accompany its decision, dealers said.'Although the accompanying post-meeting statement continues to be in the limelight, we are inclined to believe that the Fed's communication strategy at this meeting is to signify to financial markets that, while policy makers continue to monitor the uneven economic indicators, they are vigilant on the potential risk factors to the economy,' said Thomas Lam, an economist at United Overseas Bank, in a preview note.'Ideally, the statement should deliver minimal surprises to financial markets.'The Bank of Japan's decision to keep its overnight call rate target at 0.50 pct was widely expected, and it barely moved the yen against the dollar and euro, dealers said.Bank of Japan governor Toshihiko Fukui subsequent remarks at news conference also failed to trigger and sharp movements, they said.Fukui said adjustments to interest rates would continue to be gradual, with rates expected to stay low for some time. He also said the central bank would keep a close watch on land prices and currency markets when deciding policy, but that he expected the consumer price index to continue rising in the long term.Singapore 3.35 pm (0735 GMT) vs Sydney 2.08 pm (0308 GMT)US dollaryen 117.70 down from 117.82sfr 1.2136 down from 1.2145Eurousd 1.3297 up from 1.3288yen 156.53 down from 156.54sfr 1.6140 up from 1.6137stg 0.6827 down from 0.6832Sterlingusd 1.9474 up from 1.9449yen 229.24 up from 229.11sfr 2.3632 up from 2.3615Australian dollarusd 0.7998 up from 0.7977stg 0.4106 up from 0.4102yen 94.140 up from 93.975singapore@xfn.com
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Forex - US dollar softer vs yen, euro in Singapore afternoon trade 