TOKYO: The dollar slipped in Asia yesterday following mixed US data and simmering geopolitical concerns, while the Indian rupee sat close to one-year highs after the pro-business opposition won the country’s general election.
In afternoon Tokyo trading, the greenback fetched 101.43 yen, against 101.54 yen in New York on Friday afternoon.
The euro rose to $1.3700 from $1.3695 while changing hands at 138.98 yen against 139.08 yen.
The greenback was also worth Rs58.40 — levels not seen since June — after falling more than one percent on Friday as Narendra Modi’s Bharatiya Janata Party (BJP) stormed to power at the end of a marathon election.
The prime minister-elect summoned senior figures from the Hindu nationalist party on Sunday for talks on forming a new government, which won a strong mandate on promises to introduce reforms to turn around the economy.
Investors were skittish over the simmering Ukraine crisis and growing anti-Chinese unrest in Vietnam, while data out of the United States gave a mixed picture on the world’s number one economy.
That boosted buying of the yen, seen as a safe haven during times of uncertainty or turmoil. “The yen has been in demand, mainly due to unstable risk sentiment and falling expectations of the Bank of Japan considering a more aggressive monetary policy stance anytime soon,” Credit Agricole said.
On Friday, data showed US housing starts jumped a stronger-than-expected 13.2 percent in April, although the jump was driven by construction in the often-volatile multi-unit sector, while consumer confidence weakened.
Traders are now looking to Wednesday’s release of minutes from the Federal Reserve’s April 29-30 policy meeting, with Credit Agricole saying they “will be closely scrutinised for potential evolution of forward guidance as well as for clues on the monetary policy path going forward”.
AFP
