Dollar weaker in Asia as US, Japan fail to seal trade deal
The dollar weakened in Asia Thursday as the United States and Japan failed to break a deadlock holding up a Pacific-wide trade deal, with US President Barack Obama urging Tokyo to take "bold steps" to reach agreement.
The greenback changed hands at 102.30 in Tokyo, down from 102.50 yen in New York Wednesday.
The euro was at $1.3822 and 141.40 yen, against $1.3816 and 141.61 yen in US trade, where the single currency won support from an upbeat report on eurozone business activity.
Obama, who arrived in Tokyo Wednesday on the first leg of a four-nation tour, held talks with Japanese Prime Minister Shinzo Abe Thursday morning. Among the top items on his agenda was moving ahead on the Trans-Pacific Partnership trade agreement.
Talks over the proposed pact -- which encompasses 12 nations including the US and Japan and about 40 percent of the global economy -- have been held up as Tokyo and Washington locked horns over key details, including Japanese tariffs on agricultural products.
Top negotiators from both sides have spent days seeking a breakthrough over the dispute, which will entail painful political choices that could inflame anti-free trade advocates on both sides of the Pacific.
After a summit with Abe, Obama told a joint press conference that "now is the time for bold steps".
He added: "I think it's fair to say that there are a certain sectors of the Japanese economy, the agriculture sector, the auto sector, in which market access has been restricted historically."
He added that those stumbling blocks "at some point have to be resolved...(and) I believe that point is now".
Japanese economy minister Akira Amari is scheduled to talk to reporters later Thursday after holding the latest round of meetings with US Trade Representative Michael Froman in Tokyo.
The dollar also faced pressure after US new-home sales dived 14.5 percent in March from a year earlier, the second successive month of slower sales.
The euro was steady against the dollar after Markit Economics said its Eurozone Composite Purchasing Managers Index for April, a leading indicator of manufacturing and services activity, jumped to its highest reading since May 2011.
Against other Asia-Pacific currencies the dollar was at Tw$30.30, unchanged from Wednesday, while it edged up to 44.66 Philippine pesos from 44.63 pesos.
The greenback eased to Sg$1.2569 from Sg$1.2577, to 11,625.00 Indonesian rupiah from 11,655.00 rupiah, to 1,039.25 South Korean won from 1,039.45 won, and to 32.34 Thai baht from 32.38 baht.
The Australian dollar fell to 92.91 US cents from 93.21 cents, while the Chinese yuan fetched 16.40 yen against 16.42 yen.
-- Dow Jones Newswires contributed to this report --
