Dollar slips in Asia ahead of US data


TOKYO–The dollar slipped against other major currencies in Asia on Thursday as investors await revised U.S. second-quarter growth data.

In Tokyo afternoon trade, the greenback weakened to 103.73 yen, from 103.86 yen in New York. The euro turned up to US$1.3212 from US$1.3195, while it bought 137.06 yen against 137.05 yen in U.S. trading. Many investors were sticking to the sidelines ahead of the April-June figures due later in the day, which will give fresh clues about the state of the world’s number one economy. The dollar rallied in July when preliminary data showed 4-percent growth after a sharp contraction during the previous three months. “The most recent data suggest that smaller positive contributions from consumption and inventories will be offset by a smaller negative contribution from net trade to leave growth broadly unchanged,” Capital Economics said in a note. “The latest surveys imply that the economy will perform well in both the third and fourth quarters of this year,” it added The euro crept higher after Germany’s finance minister on Wednesday downplayed the chances of the European Central Bank (ECB) unveiling new measures to stave off deflation at a policy meeting next week. Wolfgang Schaeuble said markets “over-interpreted” remarks by ECB chief Mario Draghi when he said last week the bank “will use all available instruments needed to ensure price stability over the medium term”. The bank has already launched unprecedented measures to counter an economic downturn and weak inflation in the 18-member bloc. The dollar also weakened against other Asia-Pacific currencies. It slipped to SG$1.2465 from SG$1.2485 on Wednesday, to 31.89 Thai baht from 31.91 baht and to 11,688.50 Indonesian rupiah from 11,700.00 rupiah. The greenback also fell to 1,013.48 South Korean won from 1,014.25 won, to 43.66 Philippine pesos from 43.68 pesos, to 60.40 Indian rupees from 60.49 rupees.