(Seoul=Yonhap Infomax) Min Jae Lee – The US dollar index posted only a modest gain in Asian foreign exchange trading on the 24th.


According to Yonhap Infomax's major overseas FX rates (6411), the dollar index—which measures the greenback against a basket of six major currencies—was trading at 100.176 as of 13:48 KST, up 0.02% from the previous session.


The dollar index remained above the 100 mark, which it breached last week, but volatility was limited. The index briefly touched 100.292 in morning trading, up 0.14%, before returning to flat territory.


Expectations for a Federal Reserve rate cut increased following dovish comments from John Williams, President of the Federal Reserve Bank of New York, at the end of last week, capping the dollar's upside.


Williams stated at the Central Bank of Chile's centennial conference on the 21st (local time), "I still see the possibility of further adjustments to the federal funds rate target range in the near term to move policy closer to neutral."


Meanwhile, Japanese financial markets were closed for a substitute holiday for Labor Thanksgiving Day. The dollar-yen exchange rate rose 0.13% to 156.589 yen.


Traders believe Japanese authorities may intervene in the FX market if the dollar trades between 158 and 162 yen, with the thinner liquidity during the latter part of the US Thanksgiving holiday seen as a potential window for intervention.


Strategists at OCBC Bank noted, "If intervention does occur, especially in thin liquidity, the yen's appreciation could be significant."


The euro-dollar exchange rate was flat at $1.15170, with analysts noting that despite revived expectations for a US rate cut in December, the euro failed to gain strong upward momentum.


The euro-yen rate was up 0.13% at 180.35 yen from the previous session.


mjlee@yna.co.kr

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