Euro edges lower in Asian trade
The eurozone has seen poor results in recent months, and there are serious concerns.
SINGAPORE (AFP) - The euro edged lower in Asian trade Monday on growing expectations that the European Central Bank will cut interest rates to counter falling inflation, analysts said.
The common currency bought $1.3479 in Singapore afternoon trade compared with $1.3482 in New York late Friday, well down from $1.3750 on Wednesday. It also fetched 133.11 yen from 133.10 yen in New York.
The dollar rose to 98.75 yen from 98.69 yen.
"The eurozone has seen poor results in recent months, and there are serious concerns that the inflation rate has gone too low," Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.
"Investors will be watching if the ECB president Mario Draghi will indicate further monetary easing in the eurozone, with a new long-term refinancing option a viable option," he said.
The annual rate of inflation for the 17 countries that share the euro slowed unexpectedly to just 0.7 percent in October, the lowest rate in four years, raising fears the bloc may tip into deflation.
Investors are hoping for a clearer picture of the ECB s plans after its monthly policy meeting on Thursday.
The greenback remained supported by speculation the Federal Reserve will begin winding down its stimulus programme next month after it last week gave an upbeat assessment of the US economy.
"Investors will be looking at US economic data this week, especially the jobs data, for an indication of whether tapering will be brought forward to December," Chua said.
US third-quarter gross domestic product advanced estimates will be released Thursday, while official October non-farm payrolls data is out on Friday.
The dollar was mostly higher against other Asia-Pacific currencies.
It rose to Sg$1.2428 from Sg$1.2425 in Tokyo on Friday, to 1,062.15 South Korean won from 1,061.88 won, to 31.28 Thai baht from 31.19 baht and to 43.32 Philippine pesos from 43.21 pesos.
It climbed to Tw$29.42 from Tw$29.41 and to 11,373 Indonesian rupiah from 11,340 rupiah. It slipped to 61.73 Indian rupees from 61.82 Indian rupees.
The Australian dollar fetched 94.80 US cents from 94.75 cents, while the Chinese yuan rose to 16.15 yen from 16.04 yen.
