Dollar rally stumbles ahead of Fed meeting

AFP, TOKYO: The dollar’s rally against the yen stumbled yesterday ahead of a Federal Reserve meeting next week that investors will be watching for clues about the timing of a US interest rate hike.
In Tokyo trading, the dollar turned down to 123.72 yen from 123.86 yen in New York and 124.43 yen in Tokyo earlier Tuesday.
The 19-nation euro edged down to $1.0929 from $1.0942 and to 135.21 yen from 135.53 yen, as Greek lawmakers get set to vote on a second batch of reforms that must pass if Athens is to receive its third international bailout.
The euro is still well up from $1.0825 and 134.61 yen Tuesday in Asia.
“The euro is higher as progress continues to be made toward a third financial assistance programme for Greece,” said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities.
The Federal Reserve holds its next policy meeting from Tuesday, with traders looking for clues about its timetable for lifting interest rates.
Analysts have forecast a rise in either September or December after Fed chief Janet Yellen said she saw a move by the end of the year.
But “one needs to be cautious when buying dollars in anticipation of a rate hike that September is not yet a done deal” Masato Yanagiya, head of foreign exchange Sumitomo Mitsui Banking Corp., told Bloomberg News.

Dollar rally stumbles ahead of Fed meeting

AFP, TOKYO: The dollars rally against the yen stumbled yesterday ahead of a Federal Reserve meeting next week that investors will be watching for clues about the timing of a US interest rate hike. In Tokyo trading, the dollar turned down to 123.72 yen from 123.86 yen in New York and 124.43 yen in Tokyo earlier Tuesday. The 19-nation euro edged down to $1.0929 from $1.0942 and to 135.21 yen from 135.53 yen, as Greek lawmakers get set to vote on a second batch of reforms that must pass if Athens is to receive its third international bailout. The euro is still well up from $1.0825 and 134.61 yen Tuesday in Asia. The euro is higher as progress continues to be made toward a third financial assistance programme for Greece, said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities. The Federal Reserve holds its next policy meeting from Tuesday, with traders looking for clues about its timetable for lifting interest rates. Analysts have forecast a rise in either September or December after Fed chief Janet Yellen said she saw a move by the end of the year. But one needs to be cautious when buying dollars in anticipation of a rate hike that September is not yet a done deal Masato Yanagiya, head of foreign exchange Sumitomo Mitsui Banking Corp., told Bloomberg News.