• Dollar rises in Asia ahead of ECB meet, US jobs data

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    TOKYO: The dollar rose in Asia on Wednesday with investors expecting a solid US jobs report in the coming days and for the European Central Bank (ECB) to cut interest rates.

    In Tokyo afternoon trading, the greenback climbed to 102.66 yen, up from 102.52 yen in New York City on Tuesday afternoon.

    The euro slipped to $1.3609 from $1.3627, and to 139.71 yen against 139.73 yen. Payrolls firm ADP will release an employment report for May on Wednesday, which is expected to show solid gains, Credit Agricole said.

    A solid result would be taken as a good indication of what is to come in the monthly non-farm payrolls data from the Labor Department on Friday.

    The Federal Reserve’s Beige Book on the economy, due later on Wednesday, should also “underscore expectations that growth is rebounding” in the second quarter after a weak first quarter, Credit Agricole said.

    In Europe, the ECB’s meeting on Thursday is widely expected to see a cut in interest rates to support a fragile recovery and to fight off signs of deflation in the eurozone.

    Official data on Tuesday showed inflation in the 18-nation bloc slowed sharply to 0.5 percent in May, from 0.7 percent in April and far weaker than the ECB’s target of just below 2.0 percent. The dollar was mostly higher against other Asia-Pacific currencies.

    It rose to 1,026.29 South Korean won from 1,023.90 won on Tuesday, to P43.91 from P43.79, and to Tw$30.05 from Tw$30.01.

    It also firmed to Sg$1.2580 from Sg$1.2559, to 59.35 Indian rupees from 59.13 rupees, and to 11,876.30 Indonesian rupiah from 11,807.50 rupiah.

    It slipped to 32.67 Thai baht from 32.70 baht.

    The Australian dollar rose to 92.66 US cents from 92.49 cents while the Chinese yuan bought 16.39 yen against 16.36 yen.

    AFP

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