The dollar
headed for a weekly advance against the euro, rebounding from a record low on
signs U.S.
investment banks will withstand credit-market losses arising from the nation's
subprime mortgage collapse.
The yen
was set for a weekly loss against the South African rand as a rally in U.S. stocks
following JPMorgan Chase & Co.'s better-than-expected earnings encouraged
so-called carry trades. The yen fell 1.1% this week against the South African
rand. It also declined 0.5% versus Australian dollar and weakened by 0.1% versus
the New Zealand
dollar.
The Bank
of Japan held its target lending rate at 0.5 percent this week, the lowest
among major economies. Benchmark rates are 12% in South
Africa, 7.25% in Australia
and 8.25% in New Zealand.
EUR/USD tested
$1.5885 before retreated to $1.5850.
GBP/USD consolidated
within the $1.9965/$2.0000 range before sliding to $1.9912.
USD/JPY held
between the Y105.00/50 zone.
At 09:00 GMT EU trade balance will be released. There are no key US data.