Modest risk-on sentiment was the main theme...>

FOREX: Modest risk-on sentiment was the main theme in holiday-thinned Asia

markets, spurred on by healthy gains to regional equity bourses. Dollar-yen rose

from Y110.83 to Y111.25, news that PM Abe intends to dissolve the lower house

for a snap election next month made no discernible impact. Dollar-yen was last

at Y111.22. Aussie climbed from $0.7995 to $0.8035 before stalling, last at

$0.8027. Euro-dollar dipped from $1.1945 to $1.1921 shortly after the open,

traders attributed the move to comments made over the weekend by ECB's Chief

Economist Praet, who said, It is not yet time for ECB to reduce its

accommodating measures and a decision on next year's policy will be taken this

fall. The dip proved to be a knee-jerk reaction, the euro regained its poise to

trade to $1.1955 and was last at $1.1945. Meanwhile, Cable trekked higher from

$1.3560 and $1.3604 and was last at $1.3595.