Dollar edges down ahead of Fed meeting

Dollar edges down ahead of Fed meeting
Updated on

Summary The euro changed hands at $1.1005 and 135.88 yen.

TOKYO (AFP) - The dollar edged down Monday following weak US housing figures, as traders await the start of the Federal Reserve s latest policy meeting.

In Tokyo trading, the greenback fetched 123.46 yen, down from 123.81 yen in New York late Friday.

The euro changed hands at $1.1005 and 135.88 yen, against $1.0977 and 135.89 yen in US trade.

Data on Friday showed sales of new single-family homes in the US fell in June and May sales were much lower than previously reported -- disappointing news that followed a lacklustre Chinese manufacturing report.

Currency traders are now focusing on the Fed s two-day policy meeting that starts Tuesday.

While the central bank is not expected to raise interest rates, dealers are hoping for some forward guidance, with most analysts tipping a hike in either September or December

"The Tokyo market has taken over the dollar s selling sentiment from New York late last week," said Yosuke Hosokawa, head of the forex sales team at Sumitomo Mitsui Trust Bank.

"Players can t help but stay on the sidelines until the Fed makes an announcement," Hosokawa said.

"Cautious trading is expected to continue for now."
 

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