AFP, Tokyo :
The dollar rose against most Asian currencies Friday but its gains were capped by doubts about the chances of a US interest rate hike this year.
Speculation that the Federal Reserve would soon lift borrowing costs-a plus
for the dollar-got a strong boost this week as an influential member of the central bank’s New York branch hinted that a rate hike was possible as early as September.
A day later, minutes from the Fed’s July meeting, released on Wednesday, said that policy members wanted to keep “options open” but remained divided on the need for a near-term rate hike.
The more cautious tone left markets unsure about a move next month.
“A dollar-buying trend will not emerge until US interest rates rise consistently on the back of a robust economy,” Jun Kato, a senior fund manager at Shinkin Asset Management, told Bloomberg News.
“I wouldn’t be surprised if the yen… zigzagged toward 95 (per dollar) over a three-month horizon.”
In Tokyo, the dollar ticked up to 100.32 yen from 99.94 yen Thursday in New York, but it remains well off levels above 102 yen last week.
The dollar rose against most Asian currencies Friday but its gains were capped by doubts about the chances of a US interest rate hike this year.
Speculation that the Federal Reserve would soon lift borrowing costs-a plus
for the dollar-got a strong boost this week as an influential member of the central bank’s New York branch hinted that a rate hike was possible as early as September.
A day later, minutes from the Fed’s July meeting, released on Wednesday, said that policy members wanted to keep “options open” but remained divided on the need for a near-term rate hike.
The more cautious tone left markets unsure about a move next month.
“A dollar-buying trend will not emerge until US interest rates rise consistently on the back of a robust economy,” Jun Kato, a senior fund manager at Shinkin Asset Management, told Bloomberg News.
“I wouldn’t be surprised if the yen… zigzagged toward 95 (per dollar) over a three-month horizon.”
In Tokyo, the dollar ticked up to 100.32 yen from 99.94 yen Thursday in New York, but it remains well off levels above 102 yen last week.
