SYDNEY (MarketWatch) — The dollar slipped against major rivals during Asian trading on Wednesday but gained ground on the yen, while the euro held steady ahead of a handful of economic releases due later in the day.
The ICE dollar index DXY -0.16% , which measures the U.S. unit against a basket of major rivals, traded at 79.058, down from 79.087 in North American trade late Tuesday.
The dollar had lost ground Monday after Federal Reserve Chairman Ben Bernanke signalled U.S. interest rates would remain at current ultra-low levels for a few years, despite speculation of a hike as soon as next year.
However, Credit Agricole strategists said: “We do not expect the weak U.S. dollar bias to persist, especially as it is based on unrealistic expectations that the Federal Reserve will still implement more quantitative easing.”
Iran shops U.S. for wheat
Iran purchases wheat from the U.S. as it prepares for possible additional sanctions. Photo: Bloomberg News.
“While further Fed easing is possible, it may not need to involve an expansion of the Fed’s balance sheet,” the strategists said.
Credit Agricole added data due later Wednesday “should be a little more constructive for the U.S. dollar, with a likely bounce back in durable good orders in February.”
Elsewhere on the data front, German consumer prices, euro-zone money supply and Italian business confidence among the releases due later in the day.
Ahead of the reports, the euro EURUSD +0.25% traded steady at $1.333.
The British pound GBPUSD -0.17% was also little changed, buying $1.5956, compared to $1.5959 in North American trade late Tuesday.
Against the Japanese yen USDJPY -0.34% , the greenback bought ¥83.86, up from ¥83.11 in North American trade late Tuesday.
The Australian dollar AUDUSD -0.41% bought $1.0428, or a loss of 0.2% for the day, according to FactSet data.
“The currency continues to be stifled by doubts over China and, by inference, Australian economic growth prospects,” said Tim Waterer, a senior FX dealer at CMC Markets.
He said that with no key domestic data due, Aussie was likely to trade within the $1.038 - $1.054 range this week.
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