Dollar mixed amid slumping stock markets
November 3, 2007 - 0:0
TOKYO (AFP) -- The dollar was mixed in Asian trade on Friday as traders kept a nervous watch on fresh falls in global share prices, while waiting anxiously for key U.S. jobs data, dealers said.
The dollar eased to 114.76 yen in later Tokyo morning trade from 114.87 in New York late Thursday.The Japanese currency tends to benefit from any rush to safe havens as it is often used by speculators to fund risky investments.
The euro fell to 1.4428 dollars from 1.4459, easing further back from Wednesday's record high of 1.4504. The single European currency gained to 165.60 yen after 165.18.
Dealers said another slump overnight on Wall Street was the main focus of the currency market, although recent robust data including brisk third-quarter economic growth had provided some comfort to participants.
""We're monitoring a tug of war"" between brisk economic data and slumping share prices, said Kosuke Hanao, forex sales manager at HSBC.
""Share prices tumbled not because of fundamentals but because of worries over a credit crunch,"" noted Hanao.
Asian stocks also fell heavily on Friday in the wake of sharp losses in New York Thursday that wiped out the previous day's gains sparked by a U.S. interest rate cut.
""Risk appetite plunged along with Wall Street,"" said John Noonan, an analyst at Thomson IFR.
The market will get a better picture of the health of the world's largest economy with the release Friday of a key monthly U.S. labor market report that Wall Street expects to show 80,000 new jobs were created in October.
U.S. data released overnight was patchy. A government report showed that U.S. consumer spending rose a softer-than-expected 0.3 percent in September as a persistent housing downturn and tighter credit squeezed households.
The report also showed that personal income rose 0.4 percent, matching most analysts' forecasts.
A separate snapshot on home foreclosures by private firm RealtyTrac showed banks and mortgage firms filed foreclosure notices against 446,726 American homes during the third quarter, almost double the number lodged a year earlier.
The U.S. property market has been in a slump since early 2006 and foreclosures have surged in the past year as hundreds of thousands of Americans have struggled to pay their mortgages.