Dollar holds steady against other major currencies in Asia

Agence France-Presse Page 19
2009-05-16 12:16 AM

The U.S. dollar held steady against other major currencies in Asian trade yesterday as weak U.S. economic data tempered optimism about signs of easing credit market strains, dealers said.
The U.S. dollar was changing hands at 95.93 yen in Tokyo afternoon trade, compared with 95.80 late Wednesday. The euro was quoted at US$1.3641 against US$1.3638 in New York while edging up to 130.84 yen from 130.70.
While some traders expect the dollar to decline as easing financial worries reduce safe-haven demand for the currency, others believe the prospect of a recovery in the U.S. economy will support the greenback.
"We are in a difficult situation regarding sentiment towards the U.S. dollar. If asked to judge whether it is a 'buy' or 'sell,' I would say 'buy,'" said Hachijuni Bank dealer Sho Komamura.
"Credit fears have receded. The market has already braced itself for bad economic figures while business sentiment and stock prices are recovering," he said.
New claims for jobless benefits in the United States in the week to May 9 rose by 32,000 from the previous week to 637,000, well above expectations for a figure of 610,000. The data came a day after poor U.S. retail sales figures.
Japanese economic indicators had little obvious impact on the market.
Wholesale prices in April fell by 3.8 percent from a year earlier, the biggest drop in nearly 22 years, reinforcing expectations that Asia's biggest economy is heading for another bout of deflation.
At the same time core machinery orders, a leading indicator of corporate capital spending, fell by a smaller-than-expected 1.3 percent in March from the previous month, government data showed.