Euro inches up in Asia
Afp, Tokyo
The euro inched up in Asian trade Wednesday as the market waited to see how high the European Central Bank might raise interest rates in the coming months to curb inflation, dealers said. The euro firmed to 1.3527 dollars in Tokyo afternoon trade from 1.3519 in New York late Tuesday. The euro inched up to 164.13 yen from 164.11. The dollar was flat at 121.37 yen. The single currency had hit an all-time high of 164.60 yen Tuesday on the eve of the European Central Bank's meeting Wednesday when it is widely expected to increase its benchmark lending rate by 25 basis points to 4.0 percent. Market players were waiting for ECB chief Jean-Claude Trichet's press conference for possible hawkish remarks that would fuel speculation of a further interest rate rise to 4.25 percent in the coming months, dealers said. "At least a quarter of the market has already priced in a rate rise to 4.25 percent and a growing number of investors are even speculating about an increase to 4.5 percent," said Commerz Bank treasurer Ryohei Muramatsu.
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