Updated on
Summary The dollar edged down to 78.68 yen from 78.89 yen.
The euro eased in Asian afternoon trade on Wednesday after getting a boost from a decision by Moodys not to downgrade Spains credit rating and rising hopes Madrid will seek a bailout.The currency bought $1.3088 and 102.96 yen in Tokyo morning trade, slipping from $1.3096 and 103.31 yen in New York late Tuesday.The dollar edged down to 78.68 yen from 78.89 yen.Ratings agency Moodys offered critical breathing room Tuesday for Spain to fix its fiscal woes, holding the nations debt rating unchanged at Baa3, one notch above junk grade, although a negative outlook means a downgrade is still a possibility.It was a factor weve been worried about since June, so with this news, its likely that optimism toward the debt problem outlook will spread fast, said a senior dealer at a major bank in Tokyo.Rising speculation that Spain will formally seek a bailout also supported the euro, as European Union leaders prepare for talks on Thursday while there are hopes of ending the year with a deal on a stronger economic and monetary union.An uptick in US retail sales in September and data showing US home builders confidence was at its strongest in about six years helped the dollar.Citibank Japan chief currency strategist Osamu Takashima said the greenback was testing key levels.We are now at an important watershed whether the dollar continues its downturn from March or not, he told Dow Jones Newswires.The dollar was mostly lower against other Asia-Pacific currencies.It fell to Sg$1.2190 from Sg$1.2214 on Tuesday, to 30.62 Thai baht from 30.68 baht, and to 52.76 Indian rupees from 52.89 rupees.The greenback also eased to 41.21 Philippine pesos from 41.37 pesos, to Tw$29.14 from Tw$29.21 and to 1,106.35 South Korean won from 1,106.45 won.It was flat at 9,585.00 Indonesian rupiah.The Australian dollar bought $1.0308, compared with $1.0268, while Chinas yuan changed hands at 12.55 yen against 12.58 yen.
