The U.S. dollar recovered in early Asian trading Wednesday from its dip in New York as players awaited remarks from U.S. Federal Reserve Chairman Alan Greenspan later in the day about possibly raising interest rates.
The dollar was trading at 104.68 yen by late morning in Tokyo, down 0.36 yen from late Tuesday here but above the 104.42 yen it bought in New York later that day. The euro rose to US$1.3009 from US$1.2961 late Tuesday but was down at 136.16 yen from 136.18 yen.
Against other regional currencies, the greenback edged up against the Singapore dollar, South Korean won and Thai baht in initial trading from previous day levels, while slipping against the Indonesia rupiah, Philippine peso and Indian rupee.
Overnight in New York, the dollar fell for the fifth straight session as players sold the dollar ahead of Greenspan's address to the Senate later in the day.
His comments were being closely watched for signs about possible higher interest rates as well as how serious Washington may be about tackling the huge U.S. trade deficit.
Prospects of higher interest rates as well as a stance to get tough on spending will generally tend to boost the dollar.
The dollar has in recent weeks recovered some of the losses sustained last year over concerns about the U.S. trade and budget deficits. But bearish sentiments about the dollar seem to have subsided, with players staying cautious rather than betting on a continuing rally.
Greenspan is scheduled to speak before a Senate panel Wednesday and a House panel on Thursday. The U.S. currency's rebound got a major boost last week when Greenspan played down the dangers of the current account deficit.