SINGAPORE: – The greenback held steady in thin Asian trade Tuesday as dealers eyed improved US economy figures with expectations of an early interest rate hike by the Federal Reserve also providing support, according to analysts.
The US dollar was at 120.13 yen in late-morning Singapore trade, up slightly from 120.07 yen in New York on Monday.
The euro bought $1.2227 and 146.89 yen, against $1.2226 and 146.80 yen in US trade.
“The focus of today would likely come from US durable orders and US GDP figures,” Singapore-based Phillip Futures said in a note to investors.
“Durable goods orders depict a strong manufacturing sector which implies a higher industrial use of crude oil. With the US economy picking up, we expect the figures to be favourable,” it added.
The commerce department’s release of the latest gross domestic figures later Tuesday will be closely watched by the market, analysts said.
Economists surveyed by the Wall Street Journal expect the agency to say the US economy grew at a seasonally adjusted rate of 4.3 percent in the July-September quarter, up from its previous estimate of 3.9 percent.
Analysts said trading volumes were thin in Asian trading, with many traders away during the holiday season and Japanese markets closed for a public holiday.
The greenback is expected to remain well supported against other major currencies after the US Federal Reserve last week left in place market expectations that it may raise interest rates in the middle of 2015.