Dollar struggles after weak US, China data
The dollar extended its losses against the
yen and euro Monday as weak US and
Chinese data fuelled concerns about the
global economy, and bolstered the case
against a December rate rise.
The US government said Friday that
consumer spending rose only by 0.1
percent in the United States in
September, less than expected and the
slowest rate since January. More US
figures, including jobs data, is on tap for
later in the week.
The strength of the US economy is key to
a Federal Reserve move on interest rates
and more weakness could push back a
hike — which is a plus for the dollar —
into 2016.
Sentiment took another hit Monday as
weekend data showed activity in China’s
vast manufacturing sector declined in
October for the third straight month,
triggering worries about the world’s
number two economy, a crucial driver of
global growth.
“Tokyo has taken over the dollar-selling
sentiment from New York,” Minori
Uchida, head of global markets research
at Bank of Tokyo-Mitsubishi UFJ, told
AFP.
“It is difficult to buy the dollar now as
the recent economic figures are not
strong enough to justify a rate hike.
Players are now paying attention to key
indicators to be released later this week,
notably US employment figures,” he
added.
In Tokyo afternoon trade, the greenback
slipped to 120.43 yen, from 120.67 yen
in New York late Friday and above 121
yen a day earlier.
The euro bought $1.1034 and 132.88 yen
in Tokyo against $1.1003 and 132.77 yen
in US trade.
The dollar was also weaker against most
emerging currencies.
The Thai baht rose 0.16 percent against
the US unit, the Taiwan dollar gained
0.45 percent, while the Indonesian
rupiah, the Philippine peso and the
Singapore dollar also edged up.
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