Dollar claws back some losses in Asia trade
Posted by Shoaib-ur-Rehman Siddiqui
In Tokyo afternoon trade, the greenback strengthened to 108.33 yen from 108.02 yen in New York, but it was still below 108.57 yen in Tokyo seen earlier Tuesday. It had hit a six-year high above 110 yen last week.
Daiwa Securities chief forex analyst Yuji Kameoka said the dollar may be set for another fall to the 106-yen level.
'The US dollar remains too high when compared with weakness in stock and bond yields,' he told Dow Jones Newswires.
The euro weakened to $1.2636 from $1.2667, while it was also at 136.89 yen against 136.84 yen in New York.
Jittery investors moved into the yen -- a safe-haven in times of uncertainty -- after the IMF on Tuesday lowered its 2014 global growth estimate to 3.3 percent from the 3.4 percent tipped in July.
It forecast 2015 growth of 3.8 percent, against 4.0 percent previously.
The Washington-based Fund also cut its growth estimate for the eurozone and Japan, warning of stagnation in advanced economies.
The IMF's latest World Economic Outlook highlighted increased risks from the crisis in Ukraine, ongoing Middle East woes and the spread of Ebola.
Adding to the grim picture, fresh data on Tuesday showed industrial production in Germany, the eurozone's biggest economy, slumped 4.0 percent in August. That came a day after separate figures showed the country's factory orders dived 5.7 percent in the same month.
Investors are now awaiting the release later in the day of minutes from the US Federal Reserve's September policy meeting for clues of when it will start raising interest rates, generally expected in mid-2015.
The 'minutes today could be key in determining the next dollar move, and more hawkish comments could well put the momentum back in some further greenback strength', Credit Agricole said.
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