13 December 2005, 11:06  US dollar trims early losses in late Asian trade

The US dollar trimmed early losses in late Asian trading, even though concerns about a less hawkish statement by the US Federal Reserve continued to cast a shadow over the greenback. At 2.48 pm (0648 GMT) here, the dollar was at 119.88 yen, up from 119.71 yen nearly three hours earlier in Tokyo. The euro was at 1.1960 usd, down from 1.1962 usd in Tokyo. The Fed's policy-setting body, the Federal Open Market Committee (FOMC) meets later today. Since an increase of 25 basis points in its key interest rate has been fully factored-in by the market, it will be the FOMC's accompanying statement that will be closely scrutinized, dealers said. Jitters about a change in the wording of the statement have kept the dollar under pressure since yesterday, with the euro edging up towards 1.2000 usd and the dollar down towards 119.25 yen, analysts said. The concerns center on whether or not the Fed will omit the word "accommodative" from its statement, which could suggest that it is close to ending its cycle of rate increases. While the dollar slipped in early Asian trading this morning, it managed to claw back some of those losses in late afternoon action, lifting it back up close to where it ended the overnight session in the US.

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