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Euro rebounds in Asian trade

SINGAPORE, Nov 23 – The euro rebounded against the dollar in subdued Asia trading Monday, with Japan closed for a holiday.

The euro rose to 1.4957 dollars in Singapore trade from 1.4860 in New York late Friday, and to 132.53 yen from 132.24.

The dollar eased to 88.74 yen from 88.92.

"Trading is thin, with the Japanese market closed," a local forex trader said. Liquidity was also hit ahead of the closure of US financial markets on Thursday and Friday for Thanksgiving, he added.

The Singapore market will also be closed on Friday for a public holiday.

Comments by a US Federal Reserve official that he would prefer to keep the central bank\’s asset-buying programme active beyond its current cut-off date pushed the dollar lower, Dow Jones Newswires reported.

It quoted Federal Reserve Bank of St. Louis President James Bullard as saying that an extension of the programme, widely considered a negative factor for the US currency, would give more flexibility to US policymakers.

Bullard\’s comment "suggests that the Fed will continue to underwrite the rally in risk and would leave the dollar drowning in liquidity," Barclays Capital analysts said in a note to clients.

"Trading will probably be choppy as not too many people are going to be (in the market), so obviously liquidity is going to be less," Brian Kim, a currency strategist at UBS in Stamford, Connecticut, said of the shortened trading week.

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"There\’s data but not data that fundamentally will push things in a different direction," Kim said.

The euro was weaker last week as investors shunned assets viewed as risky following falls on world stock markets triggered by fresh worries about the economic outlook.

Michael Woolfolk, senior currency strategist at BNY Mellon in New York, told Dow Jones Newswires he expected risk appetite to return, which would benefit higher-yielding but riskier currencies and stocks.

Woolfolk also said he expects the current trend of dollar weakness to remain through the end of the year.

Andrew Chevariat, technical foreign exchange strategist at BNP Paribas in New York, said that while the euro could see some support this week, it was unlikely to breach the psychologically important 1.50-dollar level.

The euro hit a year-high of 1.5064 dollars on October 26.

Against other Asian currencies, the dollar fell to 1.3862 Singapore dollars from 1.3867 last Friday, to 9,467.75 Indonesian rupiah from 9,470.00 to 32.27 Taiwan dollars from 32.33, to 46.94 Philippine pesos from 47.12 and to 1,155.78 South Korean won from 1,157.90.

The dollar rose to 33.24 Thai baht from 33.21.

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