Weaker narrative –
But Draghi did voice concern over the “volatility” in currency markets. He spoke after the ECB left its bond-buying stimulus for the eurozone in place.
Stephen Innes, head of Asia-Pacific trading at OANDA, tipped the greenback to continue falling owing to Trump’s desire to help US manufacturers and exporters as part of his America First policy.
“It’s obvious to anyone that the US administration trade policy would benefit from the weaker dollar policy, but I suspect Trump’s latest … comments are more about optics and little more than a case of temporarily taming the dollar bear ahead of his Davos speech” on Friday, he said.
“The weaker dollar narrative remains intact for 2018.”
While the yen edged back up, it was still off the levels below 109 against the dollar seen in Asia on Thursday, and that game some support to the Nikkei, which ended the morning session 0.2 percent higher.
Hong Kong rose 0.8 percent after sinking almost one percent on profit-taking, while Shanghai and Seoul each added 0.1 percent. Jakarta and Kuala Lumpur also rose while Singapore was flat but Wellington, Taipei and Manila retreated.
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