Dollar Slips in Asia Shead of Fed Meeting

AFP (16/12) -- The dollar slipped in Asia on Monday as investors adjusted positions ahead of a key US Federal Reserve policy meeting this week that could see the bank announce a cut to its stimulus programme.

The greenback which had touched a five-year high 103.93 yen on Friday before easing later in the day -- fetched 102.81 yen in Tokyo late morning trade, against 103.23 yen in New York Friday. The euro, which also hit a five-year high of 142.83 yen against the yen on Friday before falling back -- bought 141.44 yen compared with 141.81 yen in New York. The single currency was at $1.3747 from $1.3738. A string of upbeat data out of the United States in recent weeks has fuelled speculation the Fed will announce a reduction in its $85 billion a month bong-buying scheme at the end of its two-day meeting Wednesday. Opinion split on whether it will begin winding down its bond-buying programme this month or early next year. The dollar-yen rate also weakened as markets took a cue from falling Japanese share prices, said a senior dealer at a major bank in Tokyo. Currency rates hardly moved soon after the Bank of Japan released said its Tankan survey of business confidence had hit a six-year high in the October-December period, underscoring growing optimism among major firms.