US dollar and Euro — File Photo
US dollar and Euro — File Photo

TOKYO: The euro slipped against other currencies in Asian trade Wednesday as the market waited for the result of the US Federal Reserve's two-day policy meeting and European Central Bank talks.

The European unit sank to $1.2291 and 95.91 yen in Tokyo afternoon trade from $1.2302 and 96.12 yen in New York late Tuesday.

The dollar eased to 78.03 yen from 78.13 yen in New York.

Traders have increasingly eyed the yen as a safe haven amid turmoil in Europe and a lumbering US economic recovery.

Currency markets would likely see cautious trade ahead of the US Federal Open Market Committee (FOMC) meeting, said Daisaku Ueno, senior foreign exchange and fixed income strategist at Mitsubishi UFJ Morgan Stanley.

“The market will be in a wait-and-see mode before the release of US economic indicators and the results of the FOMC meeting later in the day,” he said.

Ueno said he expected the Fed to hold off taking any immediate action, instead hinting at possible easing measures in the fall.

“The key is whether the FOMC statement hints at easing at the next meeting,” said Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank.

“If that happens, the dollar will be sold.”

US economic data due later Wednesday include vehicle sales and the ISM purchasing managers survey, both for July. US non-farm payrolls data is out Friday.

Markets were also looking at a meeting of the European Central Bank Thursday after ECB president Mario Draghi pledged to do whatever was necessary to protect the embattled euro.

The dollar was mixed against other Asia-Pacific currencies.

It edged up to Sg$1.2458 from Sg$1.2452 on Tuesday and to 55.56 Indian rupees from 55.54 rupees.

It slipped to 1,125.60 South Korean won from 1,132.65 won, to 41.79 Philippine pesos from 41.82 pesos, to 9,445.00 Indonesian rupiah from 9,482.00, to 31.48 Thai baht from 31.56 baht and to Tw$29.95 from Tw$30.02.

The Australian dollar traded at $1.0488 from $1.0525 while the Chinese yuan bought 12.25 yen from 12.26 yen.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Political capitalism

Political capitalism

Pakistani decision-makers salivate at the prospect of a one-party state but without paying attention to those additional ingredients.

Editorial

Spending restrictions
Updated 13 May, 2024

Spending restrictions

The country's "recovery" in recent months remains fragile and any shock at this point can mean a relapse.
Climate authority
13 May, 2024

Climate authority

WITH the authorities dragging their feet for seven years on the establishment of a Climate Change Authority and...
Vending organs
13 May, 2024

Vending organs

IN these cash-strapped times, black marketers in the organ trade are returning to rake it in by harvesting the ...
A turbulent 2023
Updated 12 May, 2024

A turbulent 2023

Govt must ensure judiciary's independence, respect for democratic processes, and protection for all citizens against abuse of power.
A moral victory
12 May, 2024

A moral victory

AS the UN General Assembly overwhelmingly voted on Friday in favour of granting Palestine greater rights at the...
Hope after defeat
12 May, 2024

Hope after defeat

ON Saturday, having fallen behind Japan in the first quarter of the Sultan Azlan Shah Cup final, Pakistan showed...