Dollar rally slows in Asian trading

TOKYO: The dollars surge ran out of steam in Asian afternoon trade Monday, despite a regional equities rally and following tepid US economic data.

The greenback fetched 100.06 yen in Tokyo, down from 100.12 yen in New York Friday afternoon.

The greenback had risen to as high as 100.40 yen before cooling off in the afternoon.

"I had expected the dollar to gain to around 100.50 yen on the back of the strength in the Asian stock market, but it hasn’t," Osao Iizuka, head of forex trading at Sumitomo Mitsui Trust Bank, told Dow Jones Newswires.

The euro edged up to $1.3497 from $1.3493 while it weakened to 135.01 yen against 135.16 yen.

On Friday the New York Feds Empire State Manufacturing business conditions index unexpectedly fell in November while, in October, US industrial production dipped and import prices fell.

The data came a day after Federal Reserve chair nominee Janet Yellen told a Senate panel confirmation hearing she would not consider ending the banks $85 billion a month asset-purchase programme as long as growth remained soft and unemployment high.

Dealers were keeping an eye on eurozone current account data due later Monday.

The dollar was mostly weaker against other Asia-Pacific currencies.

It slipped to Sg$1.2464 from Sg$1.2477 on Friday, to 62.65 Indian rupees from 63.12 rupees and to 31.56 Thai baht from 31.58 baht.

The greenback also weakened to 1,057.90 South Korean won from 1,065.30 won, to Tw$29.53 from Tw$29.55 while it gained to 43.61 Philippine pesos from 43.58 pesos.

The Australian dollar strengthened to 94.11 US cents from 93.36 cents, while the Chinese yuan was at 16.42 yen against 16.43 yen. (AFP)