Dollar Drifts Lower Against Yen, Mark As Dealers Await September Trade Data
NEW YORK -- Despite continued support by the Bank of Japan and attempts to talk it higher, the dollar drifted lower in quiet trading yesterday as the foreign-exchange market awaited today's announcement of U.S. September trade data.</br></br>Dealers describe the trade figures as crucial for the U.S. currency, and say the numbers may be the most important economic data for determining the direction of the dollar for the rest of the year.</br></br>Today "is a key day," said Michael Guarino, vice president and chief dealer with Algemene Bank NV in New York. "Everyone is expecting the deficit to be narrower than $12.2 billion."</br></br>The August U.S. trade deficit was announced at $12.18 billion after seasonal adjustment. A Dow Jones poll of 14 economists showed the average estimate of the September trade deficit to be $10.5 billion. Market players estimate a deficit of between $9.5 billion and $11 billion.</br></br>In late afternoon New York trading, the dollar was at 1.7428 marks, down from 1.7458 marks late Monday, and at 123.23 yen, down from 123.75 yen. The pound traded at $1.8088, down from $1.8090.