The dollar erased earlier gains in Asian trading Friday, as investors covered positions ahead of a speech by U.S. Federal Reserve Chairman Ben Bernanke, which could reveal more hints of the central bank’s easing intentions.
The dollar has been pressured in recent days by expectations that the Federal Open Market Committee will unveil more quantitative-easing measures (QE) at its next meeting Nov. 2-3.
“The prospect of further QE may get some clarification after Bernanke speaks in Boston this afternoon on monetary policy,” strategists at Brown Brothers Harriman said in emailed comments.
Finance Minister Yoshihiko Noda reiterated Friday morning that Japan would again “take decisive steps when necessary” to curb excessive exchange rate moves “regardless of whether there are Group of Seven or Group of 20 meetings.”
G-20 finance ministers will meet next week, ahead of the more comprehensive meeting next month in Seoul, South Korea.
While Japan is aware that more intervention would likely attract global criticism, analysts said market conditions are more important than the timing of the G-20.
“While it would become more difficult to intervene as the G-20 meeting approaches, a rise in volatility would make it easier for the Japanese government to make the case that intervention is a ‘smoothing operation’ rather than a deliberate attempt to limit currency appreciation,” said currency analysts at Barclays Capital in a note to clients.
Against the yen, the dollar (USDYEN 81.2200, -0.2200, -0.2702%) traded at ¥81.17, down from ¥81.44 in late North American trading Thursday, when it fell to a 15-year low of ¥81.02, according to FactSet Research data. See real-time currency quotes and tools.
The dollar index (DXY 76.45, -0.20, -0.26%) , a measure of the U.S. unit against a basket of major global currencies, fell to 76.531 from 76.659 late Thursday.
The euro (EURUSD 1.4087, +0.0011, +0.0782%) rose to $1.4072, from $1.4057 late Thursday, and the British pound (GBPUSD 1.6040, +0.0032, +0.1999%) also rose to $1.6026 from $1.5989.
The Australian dollar (AUDUSD 0.9956, +0.0020, +0.2013%) rose as high 99.92 U.S. cents earlier, once again just shy of parity with the greenback.
The Aussie was last buying 99.60 U.S cents, up from 99.14 cents late Thursday.
The dollar has been pressured in recent days by expectations that the Federal Open Market Committee will unveil more quantitative-easing measures (QE) at its next meeting Nov. 2-3.
“The prospect of further QE may get some clarification after Bernanke speaks in Boston this afternoon on monetary policy,” strategists at Brown Brothers Harriman said in emailed comments.
Finance Minister Yoshihiko Noda reiterated Friday morning that Japan would again “take decisive steps when necessary” to curb excessive exchange rate moves “regardless of whether there are Group of Seven or Group of 20 meetings.”
G-20 finance ministers will meet next week, ahead of the more comprehensive meeting next month in Seoul, South Korea.
While Japan is aware that more intervention would likely attract global criticism, analysts said market conditions are more important than the timing of the G-20.
“While it would become more difficult to intervene as the G-20 meeting approaches, a rise in volatility would make it easier for the Japanese government to make the case that intervention is a ‘smoothing operation’ rather than a deliberate attempt to limit currency appreciation,” said currency analysts at Barclays Capital in a note to clients.
Against the yen, the dollar (USDYEN 81.2200, -0.2200, -0.2702%) traded at ¥81.17, down from ¥81.44 in late North American trading Thursday, when it fell to a 15-year low of ¥81.02, according to FactSet Research data. See real-time currency quotes and tools.
The dollar index (DXY 76.45, -0.20, -0.26%) , a measure of the U.S. unit against a basket of major global currencies, fell to 76.531 from 76.659 late Thursday.
The euro (EURUSD 1.4087, +0.0011, +0.0782%) rose to $1.4072, from $1.4057 late Thursday, and the British pound (GBPUSD 1.6040, +0.0032, +0.1999%) also rose to $1.6026 from $1.5989.
The Australian dollar (AUDUSD 0.9956, +0.0020, +0.2013%) rose as high 99.92 U.S. cents earlier, once again just shy of parity with the greenback.
The Aussie was last buying 99.60 U.S cents, up from 99.14 cents late Thursday.
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