Dollar Eases in Asian trade after Wall Street Slip

Dollar Eases in Asian trade after Wall Street Slip

The dollar edged down against the yen in Asian trade on Friday after uninspiring US data and a slide on Wall Street, dealers said. The greenback was changing hands at 101.52 yen in Tokyo morning trade, down from 101.70 yen in New York Thursday afternoon.

Dollar eases in Asian
Dollar eases in Asian trade after Wall Street slip

The euro fetched $1.3618 and 138.26 yen against $1.3619 and 138.62 yen. “The dollar-selling momentum is continuing because of disappointment over US data,” said senior dealer at FX Prime Corp. Fresh data from the Japanese government on Friday, including inflation, had a limited impact on the currency market, he added. European and US stocks finished lower after official numbers showed consumer spending, which accounts for more than two-thirds of US economic activity, rose a mere 0.2 percent in May after a flat April.

In Japan core consumer prices — with volatile fresh food stripped out — rose 3.4 percent year-on-year in May, the internal affairs ministry said Friday. That was higher than a 3.2 percent increase in April, but matched market expectations, and gives a boost to Prime Minister Shinzo Abe´s stated aim of replacing years of deflation with a more health inflation rate of two percent. However, analysts said a large chunk of the increase came from a rise in consumption tax from 5.0 percent to 8.0 percent, which took effect on April 1.

As such, it was unlikely to dampen the Bank of Japan´s stimulus programme, a move that would place upward pressure on the yen. “While national inflation climbed to a fresh high in May, we think that underlying inflationary pressure has eased.” Capital Economics said in a note. “Core-core inflation, which excludes all food and energy prices, edged lower from 2.3 percent to 2.2 percent,” it said. -thenews