Dollar firms in Asia on Fed phase-out mood

TOKYO: The dollar firmed in Asian trade Tuesday on expectations the US Federal Reserve will begin to phase out its monetary easing this year, dealers said.

A better-than-forecast inflation reading also soothed concerns over a slowdown in China, providing further support to the greenback, dealers said.

The US currency stood at 101.13 yen in afternoon Tokyo trade, up from the 100.99 yen in New York late Monday.

The euro bought to $1.2861, compared with $1.2868, while it also fetched 130.09 yen from 129.96 yen.

Figures showing the United States put on more jobs in June than expected added to a slew of data pointing to continuing strength in the economy, raising the prospect the Fed will start its stimulus wind-down soon.

The central bank's $85 billion-a-month bond-buying scheme has been credited with fuelling a rally in global markets.

Forex traders will now look to Tokyo on Thursday, when Japanese central bank chief Haruhiko Kuroda will give a news conference after a policy-setting meeting.