By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The U.S. dollar notched marginal gains in Asian trading hours on Friday, with the currency continuing to benefit from a renewal of European sovereign-debt jitters.
The dollar index (DXY 78.39, +0.14, +0.18%) , which measures the greenback against a basket of six currencies, traded at 78.343, compared to 78.221 in late North American trading on Thursday.
The dollar usually gains when risk aversion grows, and on Thursday European debt worries came back into focus with a spike in Portuguese bond yields and a drop in the euro.
The euro (EURUSD 1.3565, -0.0033, -0.2427%) declined to $1.3580 Friday, from $1.3603 in late North American trading on Thursday.
Also fueling risk aversion, the political situation in Egypt “remains unsettled” wrote Win Thin, currency strategist at Brown Brothers Harriman.
Egyptian President Hosni Mubarak said Thursday that he will transfer power following an election later this year — disappointing the mass of protesters in central Cairo calling for his immediate departure. Read more on market reaction to Mubarak news.
“The short-term, knee-jerk reaction for emerging markets overall, as well as other risk assets, is still likely to be negative,” said Thin at BBH.
Sterling (GBPUSD 1.6042, -0.0050, -0.3107%) slipped to $1.6061, from $1.6096 in late U.S. trading.
The dollar bought 83.44 yen, compared with ¥83.35 Thursday. See real-time currency quotes and tools.
The Australian dollar (AUDUSD 0.9986, -0.0053, -0.5280%) declined 0.3% to 99.92 U.S. cents, falling back below parity after Glenn Stevens, the governor of the Reserve Bank of Australia, said Friday that interest rates are currently at an appropriate level and are likely to stay there for some time. Read more on RBA chief testimony.
