Greenback rebounds after sinking owing to uncertain US data


AFP

TOKYO–The U.S. dollar picked up on Monday after taking a hit from weak U.S. data last week that had fueled speculation a Federal Reserve rate hike would be delayed. The U.S. unit rose to 119.63 yen in Tokyo afternoon trade from 119.41 yen in New York late Friday.

The euro slipped to US$1.1434 from US$1.1446 while firming to 136.76 yen from 136.67 yen. Another batch of disappointing U.S. data Friday weighed on the greenback as they added to speculation that the economy was not strong enough at the moment for a Fed rate hike from record lows. But it recovered some ground Monday as players bought on dips. ��By a process of elimination, as long as the Fed is to move for a rate hike sooner or later, we have to buy dollars,�� a dealer at a major Japanese bank told Jiji Press news agency. While the Fed is expected to raise its key rates this year, its European and Japanese peers are committed to massive stimulus that pumps vast sums of cash into financial markets. On Friday, Fed data showed U.S. industrial production fell 0.3 percent in April, the fifth straight month of decline, while the University of Michigan’s U.S. consumer sentiment index sank to 88.6 in May from 95.9 in April. That came after figures earlier in the week showed the U.S. producer price index fell in April, confounding forecasts for a rise, while retail sales saw their weakest year-on-year growth since 2009. The dollar was mixed against other Asia-Pacific currencies. It slipped to 44.44 Philippine pesos from 44.51 on Friday, to 1,084.61 South Korean won from 1,086.57 won, and to 33.48 Thai baht from 33.59 baht

It edged up to 13,115.00 Indonesian rupiah from 13,069.00 rupiah, to 63.55 Indian rupees from 63.51 rupees, and to SG$1.3225 from SG$1.3218. The Australian dollar eased to 80.18 U.S. cents from 80.56 cents while the Chinese yuan inched up to 19.28 yen from 19.23 yen.