FOREX-Dollar, yen gain as profits taken in euro before ECB
* Profit-taking on euro, Aussie, helps dollar and yen
* But high-yielders, carry trades are still on agenda
* Eyes now on ECB, BoE rate decisions
By Shinichi Saoshiro
TOKYO, Nov 5 (Reuters) - The dollar and the yen edged up on Thursday as short-term investors and Japanese exporters sold into a rally in the euro and higher-yielding currencies which followed a repeated pledge by the U.S. Fed to keep rates low for a while.
With the Federal Reserve meeting out of the way, eyes were on rate decisions by the European Central Bank and the Bank of England later in the day, which along with U.S. jobs data on Friday were helping to keep a lid on big moves. [ECB/INT] [BOE/INT].
But the dollar and yen were expected to remain under pressure longer term following the Fed's pledge on low rates, a stance market players said was likely to fuel leveraged carry trades and boost demand for high-yielding currencies like the Australian and New Zealand dollars. [ID:nN04453484]
"What we saw was a pick up of dollar and yen carry trades after the Fed's commitment to an easy policy, and the momentum is likely to remain," said a trader at a Japanese trust bank.
The U.S. dollar index .DXY, which measures the dollar's value against a basket of currencies, inched up 0.3 percent to 75.863, pulling away from a low of 75.60 struck on Wednesday which was its weakest level in over a week. Continued...
© Thomson Reuters 2009. All rights reserved. | Learn more about Thomson Reuters
