By Dow Jones Business News, October 18, 2013, 02:31:00 AM EDT
--Dollar recovers slightly after recent selloff on expectations for further Fed easing
--Solid China growth data ease concerns over global economic slowdown
--Upcoming U.S. data, Fed speakers in focus
By Kosaku Narioka
The dollar gained against other major currencies Friday in Asia, as a selloff in response to expectations the U.S.
Federal Reserve will keep its easing policy in place appeared to have run its course for now.
Such concerns had increased as the U.S. fiscal stalemate shut down the government, with Congress narrowly averting a
debt default Wednesday.
With selling pressure on the dollar having eased for now, the market's focus has shifted away from the U.S. fiscal
crisis, which dictated trading in recent weeks.
Data showing China's growth accelerated in the third quarter also soothed fears over sharper slowdown in the global
China's gross domestic product grew 7.8%, as expected, from a year earlier, according data from the National Bureau of
Statistics released Friday. That was faster than 7.7% growth in the first quarter and 7.5% in the second.
"A slew of data confirms that the Chinese economy has performed well compared with the pessimistic view that once
prevailed," said Marito Ueda, managing director at FX Prime Corp. "Although China faces plenty of domestic problems,
it's likely the world's second largest-economy will avoid a hard landing."
The dollar was at Y98.04 as of 0535 GMT from Y97.93 late Thursday in New York. The U.K. pound was at $1.6153 from $
1.6161. The euro was at $1.3666 from $1.3675. The Australian dollar was at $0.9623 from $0.9636.
The Wall Street Journal Dollar Index, which measures the dollar against a basket of currencies, was at 72.143 from
The market focus is on when the Federal Reserve will start slowing its asset purchase program, a process known as "
"Tapering is now largely expected after the beginning of the year," said Akira Moroga, manager of forex products group
at Aozora Bank. "We are going to scrutinize U.S. economic figures from now on."
Investors are carefully watching any hints of a policy shift from Fed officials. Chicago Fed President Charles Evans
and Federal Reserve Governor Jeremy Stein are scheduled to speak at events later in the day.
"We are expecting tapering to start either in January or March," said Sei Sugimoto, who is in charge of investment
planning at Mitsui Life Insurance Co., Japan's sixth-largest life insurer. "It's best to assume yields will rise from
Because of that, the insurer doesn't plan to add much foreign bond holdings in the second half through March, he said.
Most Asian currencies were stable, meanwhile. The dollar was higher against the Malaysian ringgit as the local pension
fund took advantage of the local currency's strength to buy dollars on the dip. The greenback was recently at MYR3.1510.
The greenback fell against the new Taiwan dollar on continued foreign fund inflows. The dollar was recently at NT$
Interbank Foreign Exchange Rates At 00:50 ET / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 97.94-8.00 97.90-93 +0.06 98.15 97.86 +12.94
EUR/USD Euro 1.3661-64 1.3674-77 -0.10 1.3678 1.3660 +3.54
GBP/USD U.K. 1.6148-52 1.6163-67 -0.09 1.6166 1.6144 -0.59
USD/CHF Switzerland 0.9031-34 0.9022-26 +0.09 0.9037 0.9022 -1.31
USD/CAD Canada 1.0296-300 1.0290-94 +0.06 1.0301 1.0290 +3.74
AUD/USD Australia 0.9615-18 0.9634-37 -0.20 0.9639 0.9606 -7.47
NZD/USD New Zealand 0.8451-54 0.8482-87 -0.38 0.8490 0.8450 +2.11
EUR/JPY Japan 133.86-90 133.88-93 -0.02 134.10 133.78 +16.98
Source: ICAP PLC
Tatsuo Ito contributed to this article.
Write to Kosaku Narioka at firstname.lastname@example.org
(END) Dow Jones Newswires
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