News Column

Dollar firm in lower 102 yen range before Fed decision, U.S. GDP data

July 29, 2014

The U.S. dollar was firm in the lower 102 yen range Wednesday morning in Tokyo as traders awaited the outcome of a U.S. Federal Reserve policy meeting later Wednesday and data forecast to show a rebound in the world's largest economy.

At noon, the dollar fetched 102.11-13 yen compared with 102.07-17 yen in New York and 101.90-91 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.3412 and 136.91-98 yen against $1.3403-3413 and 136.88-98 yen in New York and $1.3432-3433 and 136.88-92 yen in Tokyo late Tuesday afternoon.

The dollar maintained its gains from overnight trading helped by improvement in the Conference Board's U.S. consumer confidence reading for July, which reached its highest level since October 2007. But the U.S. currency's rise was tempered by data showing U.S. home price increases softened in May and caution over upcoming events.

Traders are eager to find clues in the U.S. Federal Open Market Committee's post-meeting statement regarding the Fed's exit from its ultraeasy monetary policy, said Kengo Suzuki, chief foreign exchange strategist at Mizuho Securities Co.

Also due out later Wednesday, data on U.S. gross domestic product in the April to June quarter are forecast to show growth of around 3 percent.

"GDP in the January-March quarter was shockingly low at minus 2.9 percent, so the focus is on whether the U.S. economy has regained lost ground," Suzuki said.

The euro was near an eight-month low against the dollar Wednesday morning after taking a hit overnight on news that the United States and the European Union stepped up sanctions on Russia over the conflict in Ukraine.

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Source: Japan Economic Newswire

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