Dollar ticks up in Asia but economy fears cap gains

October 14, 2014
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 Dollar higher against yen as risk appetite grows/ AFP
Dollar ticks up in Asia but economy fears cap gains/ AFP

, TOKYO, October 14- The dollar ticked up in Asia on Tuesday but gains were limited by concerns over slowing global economic growth and the possibility the Federal Reserve will refrain from an early interest rate rise.

In midday trading, the dollar bought 107.08 yen, up from 106.83 yen in New York but still sharply down from 107.79 yen in Tokyo on Friday before a three-day weekend.

The euro slipped to $1.2722 from $1.2753, and to 136.23 yen from 136.25 yen in US trade, ahead of data on German investor sentiment later in the day.

National Australia Bank said in a note that the greenback was “suffering from strengthening conviction that the Fed may play it ‘lower for longer'” on interest rates due to concerns about global growth and its effects on the US economy.

Weak data from Japan, China and the eurozone has fanned fears about  global prospects, while the Federal Reserve also said it was concerned about the outlook.

That has tempered expectations the Fed will lift rates from their record lows before mid-2015, even though the US economy is picking up pace.

Dealers will be watching the release of  Germany’s ZEW investor confidence index following a series of negative indicators from the eurozone’s biggest economy.

“Today, European releases will dominate headlines and if anything could intensify recent worries on growth prospects” in the eurozone, Credit Agricole said.

The dollar was mostly weaker against  other Asia Pacific currencies.

It slipped to 61.13 Indian rupees from 61.25 rupees on Monday, to 44.74 Philippine pesos from 44.75 pesos, to 1,064.60 South Korean won from 1,067.55 won and to 12,190.40 Indonesian rupiah from 12,195.00 rupiah.

The greenback held steady at Tw$30.40 while it inched up to 32.43 Thai baht from 32.41 baht and to Sg$ 1.2712 against Sg$1.2711.

The Australian dollar firmed to 87.85 US cents from 87.72 cents while the Chinese yuan edged down to 17.46 yen from 17.49 yen.

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