Source Pravda.Ru

Dollar rises in Asia despite Japan rate hike

The U.S. dollar rose in Asia on Thursday despite the Bank of Japan's decision a day earlier to raise interest rates, a move that generally lifts a nation's currency.

The dollar was trading at 121.01 yen at mid afternoon, up from 120.88 yen late Wednesday in New York. The euro fell to US$1.3129 from US$1.3143, and hit a fresh record high of 159.13 yen against the yen.

The Bank of Japan raised Japan's key lending rate, the unsecured overnight call rate, to 0.50 percent from 0.25 percent Wednesday.

But Japanese interest rates still remain so low compared to those in the U.S. and Europe that the widely expected rise in the yen failed to happen.

"When there are few-to-no fresh cues, players trade currencies based upon interest-rate differentials," said Toru Umemoto, chief foreign-exchange strategist with Barclays Bank in Tokyo.

The market now doesn't expect another rate hike for at least a few months, and analysts predict the European unit to head for 163 yen by the end of the month.

"Hopes for high yields in Europe are still solid," said Yuichiro Harada, a senior trader at Mizuho Corporate Bank, reports AP.

The dollar was mostly higher against other regional currencies, climbing to 48.26-28 Philippine pesos from 47.980 the previous session, to 44.262 Indian rupees from 44.01, and to 939.1 South Korean won from 938.4.

Comments
Ukraine suspicious about Russia's intention to give away rusty ships to Kiev
Keys to understanding the world from Feminism - Science and Feminism
You're invited to death penalty: Barbaric traditions of world's most progressive states
Russia's new torpedo carrying 100-megaton nuclear warhead nullifies USA's Prompt Global Strike
Russia's new torpedo carrying 100-megaton nuclear warhead nullifies USA's Prompt Global Strike
Russian poultry stuffed with antibiotics and dangerous bacteria
Americans declassify plans to drop 466 nuclear bombs on USSR
Russia's new torpedo carrying 100-megaton nuclear warhead nullifies USA's Prompt Global Strike
Russia's and China's gold may end global domination of US dollar
Unveiled: Secret Pentagon UFO program. From science fiction to science fact
Russian poultry stuffed with antibiotics and dangerous bacteria
Russia eyes opportunity to restore all Soviet bases that had to be abandoned after 1991
Call girl dies of asphyxia in bizarre sexual encounter
Call girl dies of asphyxia in bizarre sexual encounter
Call girl dies of asphyxia in bizarre sexual encounter
German experts name Russia's most dangerous weapon
Russia to impose sanctions on WADA for Winter Olympics 2018
Russian Guard to see enemies behind walls
What will happen if USA freezes Russian dollar assets?
Ukraine suspicious about Russia's intention to give away rusty ships to Kiev
Russian Armed Forces to receive second-to-none gliding bomb