Dollar, Yen Stay Lower on China Data, Euro-Area Outlook
The dollar and yen remained weaker versus most peers as signs of economic improvement in China and speculation European leaders are progressing toward resolving the region’s debt crisis curbed demand for haven assets.
Investor appetite for the U.S. and Japanese currencies was tempered before European Union leaders gather for a summit this week, when they are expected to discuss measures to contain fiscal turmoil within the euro area. The greenback and yen also stayed lower versus Australia’s dollar following a decline last week after a report showed bigger-than-expected gains in Chinese exports.
“Some of the European concerns have been alleviated and that’s positive for sentiment,” reducing demand for the dollar and yen, said Janu Chan, economist at St. George Bank Ltd. in Sydney. “Given that Chinese export data was stronger than expected, it could be signaling the slowdown in the Chinese economy is stabilizing.”
The dollar was at $1.2949 per euro as of 8:05 a.m. in Tokyo after falling 0.2 percent to $1.2951 on Oct. 12. It was little changed at 78.45 yen. Japan’s currency fetched 101.56 per euro following a 0.3 percent drop to 101.61 at the end of last week.
The greenback was little changed at $1.0234 against Australia’s dollar after a 0.5 percent weekly decline, while the yen traded at 80.28 per so-called Aussie from 80.27 on Oct. 12, when it completed a 0.2 percent five-day slide.
EU leaders will meet in Brussels on Oct. 18-19 after a weekend in which international finance chiefs expressed some optimism that a firewall is in place to contain the euro’s turmoil and urged further action to quell the main threat to global growth.
In China, the customs administration said Oct. 13 overseas shipments increased 9.9 percent in September from a year earlier. That compares with the 5.5 percent median estimate in a Bloomberg News survey of economists. Figures for third-quarter growth in the world’s second-biggest economy are due for release on Oct. 18 and are forecast to show a 7.4 percent increase from a year earlier, versus a 7.6 percent gain in the previous period, according to a separate poll.
To contact the editor responsible for this story: Rocky Swift at email@example.com