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Sunday, November 10, 2024  
07 Jumada Al-Awwal 1446  

Dollar mixed in Asia ahead of Fed meeting minutes

TOKYO: The dollar was mixed in Asia on Wednesday as investors await the release of minutes from the Federal Reserve's most recent meeting to see if it plans to continue winding down its stimulus programme.

The greenback fetched 104.87 yen in Tokyo midday trade, rising from 104.69 yen in New York on Tuesday.

The euro gained to $1.3625 from $1.3614 and to 142.89 yen from 142.53 yen.

The Fed will later in the day release the minutes from its December
meeting, when it said it would reduce its stimulus programme by $10 billion a month to $75 billion from January. Analysts will be looking to see if there are any clues about its plans for the scheme this year following a string of upbeat data on the economy.

Traders were buoyed by news Tuesday that the US trade deficit had shrunk in November as exports surged.

On Friday the Labor Department will release closely watched non-farm payrolls figures, which will provide fresh insight into the state of the economy.

An upbeat jobs report "will boost confidence in a further taper from the Fed when they meet on January 29", National Australia Bank said.

"Some added colour on FOMC (Federal Open Market Committee) thinking on tapering may come from the December FOMC minutes to be released" later Wednesday, it added.

In the eurozone data showed inflation fell to 0.8 percent in December from 0.9 percent in November, stoking fears of deflation that could endanger growth prospects

The European Central Bank holds a policy meeting this week and the latest figures have stoked speculation of further monetary easing to counter any slowdown in the 17-nation bloc.

However, the euro won a measure of support from Ireland's well received return to the sovereign debt market Tuesday.

Dublin raised 3.75 billion-euros in a 10-year bond auction, its first issue since exiting an international rescue programme.

SOURCE: AFP/APP