Dollar rangebond in holiday-thinned Asian trade

April 22, 2011 | 14:19

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The dollar was rangebond in Asia on Friday as transactions were limited position-adjustments with investors off across much of Asia for public holidays, dealers said.

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The dollar stood at 81.88 yen, slightly stronger from 81.85 yen in New York Thursday. The euro bought $1.4571 and 119.30 yen against $1.4550 and 119.11 yen in New York.

US debt worries pressured the currency, while support for the greenback came as some investors sold the euro to lock in profits in early trade ahead of the Easter holiday.

Transactions lacked vigor as Western dealers kept their hands off the market ahead of the long weekend, with a series of public holidays in many countries but not in Japan.

"There was no clear direction in the market. Market activities were thin, with Asian players off for the holiday," said a dealer at a major Japanese bank.

Meanwhile, the Japanese finance minister reiterated his resolve to ensure fiscal discipline after the government approved a four-trillion yen extra budget for reconstruction after the March 11 earthquake and tsunami.

"I would like to take measures, keeping in mind that (international organisations and markets) are watching us on the issue of fiscal reform," Noda told reporters.

The Organization for Economic Cooperation and Development Thursday called on Japan to raise consumption tax to cut the nation's debt, which stands at nearly 200 percent of gross domestic product.

The greenback was mixed against other Asian currencies, falling to Sg$1.2341 from Sg$1.2368, to 8,622.50 Indonesian rupiah from 8,627.50 and to 43.12 Philippine pesos from 43.17.

But the US currency gained to 1,081.40 South Korean won from 1,079.35. It was unchanged at Tw$28.90 and Tw$29.92 Thai baht.

AFP

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