By Hiroyuki Kachi
The dollar regained some ground against rival currencies during Asia trade Friday, with dip-buying kicking in after the greenback's retreat following President-elect Donald Trump's news conference on Wednesday in the U.S.
Around 0450 GMT, the U.S. currency was trading at Y114.96 compared with Y114.75 late Thursday in New York. The euro was almost unchanged at $1.0613 from $1.0614.
The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was up 0.05% at 92.14. The greenback was also strengthening against Asian peers such as the Chinese yuan, the Thai baht and the Indonesian rupiah.
With little fresh information on Mr. Trump's economic policies emerging from his news conference, the dollar retreated Thursday, having rallied in recent weeks on hopes for fiscal stimulus, deregulation and tax cuts. Investors were expecting these steps to lead to U.S. economic growth, faster inflation and a potentially quicker pace of interest-rate rises by the Federal Reserve.
Dollar-buying appeared to have been restarted Friday by Japanese importers and other corporate entities for regular commercial trade settlement. U.S. Treasurys also gained during Asian trading hours, lending support to the U.S. currency.
"The pace of the dollar's gains against the yen has been so rapid that demand for dollars is set to intensify below Y115," said Minori Uchida, head of Tokyo global markets research at Bank of Tokyo-Mitsubishi UFJ.
He said the focus is now U.S. December retail sales scheduled for later Friday. But the currency market could be in for a disappointment as the bar is high, he said. Economists expect a 0.7% rise in December sales from a month earlier.
The Australian dollar showed a muted reaction to China's trade data earlier in the session. The Aussie rose to $0.7487 and Y86.07 from $0.7484 and Y85.85.
China's exports in December fell 6.1% in dollar terms from a year earlier, following an uptick in November, indicating that shipments from the world's second-largest economy are still a weak spot in overall economic performance amid continued sluggishness in global trade. The December decline was worse than the 3.0% drop in market forecasts.
In other currency trade, the euro was at Y122.03 from Y121.79 late Thursday.
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 114.96-97 114.72-73 +0.22 115.18 114.56 -1.74
EUR/USD Euro 1.0612-15 1.0610-13 +0.02 1.0621 1.0604 +0.89
GBP/USD U.K. 1.2164-66 1.2162-64 +0.02 1.2174 1.2140 -1.46
USD/CHF Switzerland 1.0101-05 1.0107-11 -0.06 1.0114 1.0099 -0.84
USD/CAD Canada 1.3156-61 1.3143-48 +0.10 1.3170 1.3135 -2.11
AUD/USD Australia 0.7485-89 0.7482-86 +0.04 0.7508 0.7477 +3.96
NZD/USD New Zealand 0.7120-26 0.7094-100 +0.37 0.7124 0.7090 +2.86
EUR/JPY Japan 122.00-04 121.72-76 +0.23 122.17 121.61 -0.88
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
January 13, 2017 00:42 ET (05:42 GMT)
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