Dollar weakens in Asia ahead of Fed announcement
News On Japan via Jakarta Globe -- Sep 14

The dollar edged down in Asia on Thursday as dealers await the outcome of a US Federal Reserve policy meeting expected to result in further easing measures to boost the world's biggest economy.

The greenback bought 77.70 yen in Tokyo trade against 77.84 yen in New York late Wednesday.

The euro - which jumped after a German court Wednesday ruled the eurozone's permanent bailout fund was legal - rose to $1.2925 from $1.2899 in New York and to 100.46 yen from 100.42 yen.

The Federal Open Market Committee's two-day policy meeting was to wrap up later Thursday with the expectation that the bank will announce a new round of bond-buying known as quantitative easing, which would see a flood of dollars hit the market.

"The countdown to tonight's FOMC decision is set to keep trading subdued on Thursday amid a non-descript domestic calendar," National Australia Bank said in a note.

Currency markets were also eyeing Spain to see if Madrid taps a new European Central Bank bond-buying program aimed at bringing down borrowing costs for debt-hit members of the 17-nation eurozone.

Source: Jakarta Globe



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