29 December 2005, 11:33  US dollar ends Asian session mostly weaker amid thin flows

The US dollar ended broadly weaker in Asia after trading in narrow ranges as market flows slowed to a trickle ahead of the year-end, dealers said. After rising modestly in New York, the dollar gave up some of those gains in Asia, driven by speculative and tech-driven demand for euro and sterling, while the yen remained generally under pressure. Cable was the active pair, continuing the pattern seen overnight. Early demand was said to have been led by an Asian sovereign name, which lifted cable above 1.7200 usd and follow-through buying drove it up to 1.7219 usd. Euro-sterling profit-taking subsequently pushed cable down toward 1.7200 usd but the latter proved resilient, with bids reportedly from US investment banks, spotted around 1.7170/80 usd providing an additional lift. Euro-dollar also rose initially, making an early run to a 1.1856 usd high but failed to match sterling's performance as the single currency found its progress hampered by stubborn offers above 1.1850 usd. "Euro-dollar tried to mimic the pound but encountered selling interest from short-term momentum accounts near 1.1855 usd," said a dealer in Asia. "Pressure also surfaced through euro-sterling profit-taking."

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