FOREX-Dollar stands tall against yen ahead of US GDP data

Yen trading below 105 vs dollar for first time since July

* Dollar surges vs Swedish crown on dovish Riksbank comments

TOKYO, Oct 28 (Reuters) – The dollar stood tall against the yen in Asian trading on Friday, on track for weekly gains against most rivals, as investors waited for U.S. third quarter growth data later in the day.

Positive growth numbers would reinforce expectations that the U.S. Federal Reserve is gearing up to hike interest rates.

The dollar got an overnight lift from yields on U.S. Treasuries, which climbed to roughly five-month peaks tracking gains in German and British bond yields as investors speculated that the Bank of England and the European Central Bank would both hold off on further easing measures.

Strong growth data in Britain prompted investors to trim their bets that the Bank of England will cut interest rates at its policy meeting next week.

“The UK GDP was higher than expected, which boosted yields, and then higher U.S. yields in turn helped lift the dollar,” said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.

The dollar notched a three-month high against the yen of 105.34 yen on Thursday. It was last down 0.1 percent on the day at 105.22 yen, up 1.4 percent for the week.

“105 was both a psychological and technical point, and it broke ahead of U.S. GDP later today,” Ogino said. “Some people did not want to be short ahead of that, also with the Bank of Japan and Fed meetings next week, and U.S. nonfarm payrolls data one week from today.”

Bank of Japan Governor Haruhiko Kuroda told parliament last week that he saw no need to ease at the bank’s Oct. 31-Nov. 1 policy meeting, suggesting there will be no further monetary stimulus except in response to a big external shock.

Data released earlier on Friday showed Japan’s core consumer prices fell 0.5 percent in September from a year earlier to mark the seventh straight month of declines, adding to a recent run of gloomy indicators.

The dollar also traded around a 7 1/2 year high against the Swedish crown after Sweden’s Riksbank said the chances of another interest rate cut had increased and it was ready to expand its quantitative easing program.

The greenback last stood at 9.0776 crowns after climbing to 9.0890 crowns on Thursday, its highest level since early March 2009.

The euro edged up 0.1 percent to $1.0901, up 0.2 percent for the week.

Against a basket of six major currencies, the dollar edged up to 98.929, on track to rise 0.2 percent for the week in which it touched a nearly nine-month high of 99.119.

Sterling was up 0.1 percent at $1.2169, on track to end a choppy week down 0.5 percent.

(Reporting by Tokyo markets team; Editing by Eric Meijer)

India’s forex reserves rise $1 bn to $367.14 bn

India’s forex reserves rose by USD 1 billion to USD 367.14 billion for the week ended October 21 on the back of increase in the core currency assets, the Reserve Bank said today. Total reserves had dipped by USD 1.506 billion to USD 366.139 billion in the previous reporting week, after touching a life-time high of USD 371.99 billion in the week to September 30, 2016. In the reporting week, foreign currency assets (FCAs), a major component of the overall reserves, increased by USD 1.015 billion to USD 341.923 billion. FCAs, expressed in US dollar terms, include the effect of appreciation/depreciation of non-US currencies such as the euro, pound and the yen held in the reserves. Gold reserves remained steady at USD 21.406 billion, the apex bank said. The special drawing rights with the International Monetary Fund declined by USD 5.4 million to USD 1.463 billion, while India’s reserve position with the Fund dipped by USD 8.8 million to USD 2.347 billion, the apex bank said.

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