Greenback relinquishes gains made in Asia after release of US GDP data


AFP

TOKYO–The dollar lost more ground in thin Asian trade Thursday, after a rally powered by decade-high U.S. economic growth figures. In Tokyo afternoon trade, the U.S. unit bought 120.14 yen, weakening from 120.44 yen in New York, although the greenback was still up from the 119-yen level earlier this week. The greenback got a boost on Tuesday as the U.S. Commerce Department raised its estimate for third-quarter growth from 3.9 percent to 5.0 percent, the best since 2003. The news fuelled hopes the U.S. Federal Reserve will start to raise interest rates from current record lows faster than other major central banks, which is a plus for the dollar. The euro changed hands at US$1.2216 and 146.78 yen against US$1.2202 and 146.97 yen in U.S. trade. The dollar was mixed against other Asia-Pacific currencies.

It slipped to 12,468.80 Indonesian rupiah from 12,471.00 rupiah on Wednesday, to SG$1.3213 from SG$1.3238, to 1,102.50 South Korean won from 1,102.92 won and to 32.87 Thai baht from 32.90 baht. The greenback rose to 63.52 Indian rupees from 63.41 rupees and to 44.70 Philippine pesos from 44.67 pesos. The Australian dollar bought 81.23 U.S. cents against 81.11 cents, while the Chinese yuan was at 19.37 yen, up from 19.32 yen.