3 August 2006, 10:27  Dollar continues firmer in Singapore trade ahead of key US data

The US dollar sustained its gains against the yen ahead of the release of key US data later today and tomorrow, with investors hoping to get clues on whether the Federal Open Market Committee (FOMC) will further raise US interest rates when it meets on Aug 8, dealers said. The US July ISM services data along with June manufacturing shipments will be out tonight, while the US non-farm payrolls and jobless data for July comes out tomorrow. Against the euro the dollar fell back amid expectations that the European Centran Bank will raise rates by another 25 basis points to 3.0 pct at its policy meeting later today. "While the ECB's tightening bias underpins support for the euro over the medium-term, the short-term downside risks include any toning down of the 'strong vigilance' phrase used (by the ECB) in July," United Overseas Bank said in a note to clients.

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