
ASIA FX: Dollar in Narrow Ranges; Japan Holiday, Pre-FOMC
SINGAPORE (MNI) Sept 22 - The dollar moved in narrow ranges against major currencies in Asia morning trade as a lack of players and reluctance to make moves before the end of the U.S. FOMC kept dealing to a minimum.
With Japan still on holiday (Tokyo markets re-open Thursday) the dollar was trading around Y91.75, slightly weaker from its Y92.05 New York finish. The euro was at $1.4717 from $1.4672 in New York while the euro-yen cross was Y135.04 from Y135.20.
One trader reported offers near 1.4720-40 and stop buy orders gathering above 1.4760. Buy orders are still found near 1.4600-20.
Gold prices moved up $0.62 to $1,005.79 in morning Asian trade on bargain hunting after prices fell to a week-low of $995.50 on Monday. A weaker US dollar will also lend support to prices making it a more appealing safe haven investment.
As well as the FOMC which ends Wednesday, players were also awaiting the outcome of the weekend G20 meeting and plans to agree a framework of sustainable growth, as reported Monday in the Wall Street Journal.
Comments from Canadian officials that the framework would look for a rebalancing of surpluses and deficits on Monday added some weakness to the dollar as some worried that could mean sustained dollar weakness.
But the FT reported Tuesday that the framework will lack a powerful enforcement mechanism. It reported G20 officials as saying that no country would cede sovereignty on core economic decisions, so there would be no agreement to fine or punish countries that built up the sort of large trade surpluses or deficits that contributed to global trade imbalances.

