Dollar edges up in sluggish Asian trade
Afp, Singapore
The dollar edged upward Friday in sluggish Asian trade as the market looked ahead to US data after the US and European central banks left their monetary policies unchanged, dealers said. The dollar inched upward to 119.91 yen in Tokyo afteroon trade from 119.90 yen in New York late Thursday. The euro slightly declined to 1.3480 dollars from 1.3483 dollars and to 161.61 yen after 161.68 yen. On Thursday, the European Central Bank (ECB) kept interest rates steady at 3.75 percent as expected and signalled a near certain June interest rate hike of 25 basis points. The ECB decision came a day after the US Federal Reserve made no change in interest rates while maintaining a guardedly positive outlook on the world's biggest economy. "The euro is facing moderate selling pressure as dealers are adjusting their long (buy) positions in the euro after the ECB meeting ended as expected," said Hironobu Hagi, deputy general manager at Shinsei Bank's capital markets division. "But a continued fall in the euro is unlikely as there is no particular reason to back up the dollar at this moment," Hagi said. "Now, players are trying to find trading leads to set a direction going forward."
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