By Kosaku Narioka
The dollar declined Monday in Asia as market participants waited to see if the Trump administration can deliver new pro-growth economic policies next year.
Trading was thin because participants in many countries were away for public holidays. Some profit-taking on the dollar's recent surge weighed on the U.S. currency.
Market participants are now reluctant to keep buying the dollar after having lifted it since the U.S. presidential election in early November. The ascent was driven by speculation that President-elect Donald Trump will boost fiscal spending and introduce tax cuts, including possibly tax relief for U.S. companies repatriatingearnings held overseas.
Market participants are now watching to see if Mr. Trump would indeed take steps to improve the U.S. economy.
"If he can works well with Congress, more dollar-buying is likely," said Akira Moroga, joint general manager of market products division at Aozora Bank. Mr. Moroga said if that happens, the euro could test parity against the dollar next year.
The euro was at $1.0462 as of 0450 GMT, up from $1.0456 late Friday in New York, according to EBS. The dollar was at 117.19 yen, down from Y117.49. The British pound was at $1.2279, compared with $1.2278.
Meanwhile, market participants are also watching if Mr. Trump expresses any concerns about the dollar's recent strengthening, which could damage the competitiveness of U.S.-based manufacturers in global markets.
The dollar has strengthened 3.7% against the euro so far this year. The U.S. currency has gained 7.0% against the Chinese yuan in 2016, though the dollar is still down 2.6% against the yen.
Interbank Foreign Exchange Rates At 23:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 117.15-16 117.32-33 -0.14 117.34 117.01 -2.61
EUR/USD Euro 1.0460-63 1.0454-57 +0.06 1.0465 1.0447 -3.67
GBP/USD U.K. 1.2277-79 1.2284-86 -0.06 1.2293 1.2276 -16.68
USD/CHF Switzerland 1.0255-59 1.0264-68 -0.09 1.0275 1.0252 +2.37
USD/CAD Canada 1.3510-15 1.3537-42 -0.20 1.3546 1.3509 -2.36
AUD/USD Australia 0.7189-93 0.7173-77 +0.22 0.7200 0.7166 -1.32
NZD/USD New Zealand 0.6888-94 0.6876-82 +0.17 0.6901 0.6875 +0.85
EUR/JPY Japan 122.55-59 122.63-67 -0.07 122.67 122.32 -6.28
Write to Kosaku Narioka at firstname.lastname@example.org
(END) Dow Jones Newswires
December 26, 2016 00:24 ET (05:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.