Dollar at three month peak on yen, China data awaited
By Wayne Cole
SYDNEY (Reuters) - The U.S. dollar held near multi-year highs on the yen and euro on Tuesday amid starkly different outlooks for global interest rates, while Asian investors braced for more economic news from China.
The dollar was nearing major chart barriers against the yen, having hit a three-month high at 121.46 yen JPY=. A break of 121.84 would take it to territory not visited since July 2007.
A lower yen is viewed as positive for exports and corporate profits, and Nikkei futures JNIc1 implied opening gains of around 100 points for the index .N225.
Early share moves were modest with Australian stocks .AXJO edging up 0.2 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat.
Investors were waiting on Chinese inflation data, where a soft result would underline the scope for easier monetary and fiscal policies, but might also aggravate fears of deflation.
Consumer prices are seen rising 0.8 percent in February, from January, while the annual pace should tick up to 0.9 percent. ECONCN
China's share markets .SSEC bounced on Monday as bank stocks benefited from news the securities regulator was considering issuing brokerage licenses to banks, potentially creating a new revenue stream for the industry.
Wall Street also rallied on Monday, helped by more billion-dollar takeover deals. [.N] Continued...