Forex - Dollar sustains rebound vs yen, euro in Singapore afternoon post FOMC |
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Thu, 01 Feb 2007 09:13
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SINGAPORE (XFN-ASIA) - The dollar continued its rebound against the yen and euro after declines overnight following the Federal Reserve's decision to keep interest rates unchanged and its less-hawkish-than-expected statement, dealers said.At 3.30 pm (0730 GMT), the dollar was trading at 120.72 yen, up from 120.64 in Sydney just a little over four hours earlier, while the euro was at 1.3013 usd, down from 1.3027.The Fed's rate-setting body, the Federal Open Market Committee last night voted unanimously to keep the benchmark Fed funds rate at 5.25 pct and stated that 'inflation pressures seem likely to moderate over time.''The message is that the committee is still more inflation-sensitive than growth sensitive at this juncture,' noted United Overseas Bank economist Thomas Lam.'Accordingly, the odds of a rate reduction implied from the fed funds futures contracts edged higher overnight, but mainly in the more distant months.'The dollar's weakness overnight had been exacerbated by US Treasury Secretary Henry Paulson saying he had already talked with Japan's finance minister regarding the yen and that he planned to raise the issue further at next week's G7 meeting.'Expect market caution toward a lower dollar-yen in the run-up to next week's G7 meeting,' OCBC Investment Research said in a note.Singapore 3.30 pm (0730 GMT) vs Sydney 2:18 pm (0318 GMT)US dollaryen 120.72 up from 120.64sfr 1.2457 up from 1.2441Eurousd 1.3013 down from 1.3027yen 157.14 down from 157.18sfr 1.6215 up from 1.6209stg 0.6630 down from 0.6641Sterlingusd 1.9623 down from 1.9629yen 236.91 up from 236.75sfr 2.4442 up from 2.4419Australian dollarusd 0.7742 down from 0.7750stg 0.3945 down from 0.3948yen 93.510 up from 93.485singapore@xfn.com
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Forex - US dollar, euro slip as yen rebounds in Singapore afternoon trade 