TOKYO: The dollar dipped in Asian trade Tuesday after enjoying a recent rally, with investors awaiting the release of key US data this week, while they are also keeping tabs on protests in Hong Kong that have shut parts of the city.
The greenback was changing hands at 109.24 yen, down from 109.45 yen in New York late Monday, while the euro fetched $1.2695 compared with $1.2686.
And the single currency was also at 138.70 yen, against and 138.87 yen.
A string of impressive indicators out of Washington in recent weeks have fuelled hopes the US economy is back on track and increasing the likelihood the Federal Reserve will hike interest rates sooner than later.
However, traders have stepped back ahead of the release of a raft of data through the week that culminates with Friday's US jobs report for September.
However, analysts said the dollar could resume its uptrend if a September consumer confidence survey, expected later in the global day, edges higher, Credit Agricole said in a statement.
Eyes are also on events in Hong Kong, where a demonstration has moved into a third day, keeping parts of the financial hub shut down.
Tens of thousands of people turned main thoroughfares into street parties on Monday night, with the mood turning festive just a day after riot police fired tear gas in ugly clashes.
"Hong Kong will no doubt be a major (focus of) attention for now with the markets likely more sensitive to any downside surprises," National Australia Bank said in a note to clients.
The Hong Kong dollar was at 7.7652 to one US dollar, around a six-month low. The currency is pegged to the greenback and is permitted to trade in a HK$7.75-HK$7.85 range.
The euro may get a temporary boost if eurozone inflation shows an upturn when data is released later in the day, Credit Agricole said.
But Junichi Ishikawa, market analyst at IG Securities, said the euro could fall below $1.26 if inflation comes in weak again as it could lead to further monetary easing measures by the European Central Bank.
Japanese figures showing factory output saw a surprise drop and household spending kept falling in August failed to make an impact on currency markets.
Comments
Comments are closed for this article.