Dollar falls against yen

AFP, TOKYO: The dollar slipped against the yen and euro yesterday on fears that China’s economic malaise could drag on global growth, reversing a rally that had been fuelled by hopes of a September US rate rise.
In Tokyo afternoon trade, the dollar weakened to 121.10 yen from 121.52 yen late Friday in New York.
The euro rose to $1.1249 and 136.24 yen from $1.1188 and 135.97 yen in US trade.
Speaking at the weekend on the sidelines of the Fed’s central banking symposium in Jackson Hole, Federal Reserve vice chairman Stanley Fischer acknowledged that the turmoil rooted in China had raised some questions about the economic situation, even if US data remains good.
“The change in the circumstances which began with the Chinese devaluation (of the yuan) is relatively new and we are still watching how it unfolds. So I wouldn’t want to go ahead and decide right now (on a September rise),” he said in a CNBC interview.
“We’ve got a little over two weeks before we make the decision and we’ve got time to wait and see the incoming data and see what exactly, what is going on now in the economy.”
Fischer’s remarks were taken as a sign that the US central bank was still considering a rate rise as early as next month.
Higher rates tend to boost the dollar as investors seek out higher-yielding assets.

Dollar falls against yen

AFP, TOKYO: The dollar slipped against the yen and euro yesterday on fears that Chinas economic malaise could drag on global growth, reversing a rally that had been fuelled by hopes of a September US rate rise. In Tokyo afternoon trade, the dollar weakened to 121.10 yen from 121.52 yen late Friday in New York. The euro rose to $1.1249 and 136.24 yen from $1.1188 and 135.97 yen in US trade. Speaking at the weekend on the sidelines of the Feds central banking symposium in Jackson Hole, Federal Reserve vice chairman Stanley Fischer acknowledged that the turmoil rooted in China had raised some questions about the economic situation, even if US data remains good. The change in the circumstances which began with the Chinese devaluation (of the yuan) is relatively new and we are still watching how it unfolds. So I wouldnt want to go ahead and decide right now (on a September rise), he said in a CNBC interview. Weve got a little over two weeks before we make the decision and weve got time to wait and see the incoming data and see what exactly, what is going on now in the economy. Fischers remarks were taken as a sign that the US central bank was still considering a rate rise as early as next month. Higher rates tend to boost the dollar as investors seek out higher-yielding assets.