TOKYO, Nov 5: Asian shares edged higher while the dollar slipped against a basket of currencies in early trade on Tuesday, after a spate of comments from Federal Reserve officials offered nothing to suggest that a rollback of the massive U.S. stimulus is imminent.
The euro, meanwhile, was hobbled by expectations that the European Central Bank will cut rates further, with a few tipping action as early as its policy meeting on Thursday
Eric Rosengren, president of the Boston Fed, said late on Monday that it may be appropriate to reduce the quantitative easing program when there is ‘compelling evidence of a sustainable recovery making satisfactory progress toward full employment.’
Earlier on Monday, St. Louis Fed President James Bullard said the central bank need not rush because inflation remains low, while Fed Board Governor Jerome Powell said the tapering timing ‘is necessarily uncertain, as it depends on the evolution of the economy.’
Australian shares rose 0.7 percent ahead of the conclusion of the Reserve Bank of Australia’s policy meeting later in the session. The RBA will announce its decision at 0330 GMT and is widely expected to leave interest rates unchanged for a third month amid signs past cuts are filtering through to economic activity.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.2 percent in early trade.
U.S. S&P E-mini futures were down about 0.1 percent, after the S&P 500 Index closed up 0.4 percent on Monday, just shy of a record high.
The dollar index, which measures the greenback against six major currencies, slipped 0.2 percent to 80.582, though it remained well above a nine-month low of 78.998 hit on Oct. 25. (agencies)
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