Dollar slips in Asia amid pessimism about U.S. economy

The dollar dipped in Asia Friday following disappointing data about the U.S. economy.

The dollar was trading at 119.90 yen midafternoon, down from 120.44 yen late Thursday in New York. The euro fell to US$1.3479 from US$1.3508.

Worries about a U.S. slowdown grew after the Dow Jones industrial average fell 147.74 points, or 1 percent, overnight, and the Commerce Department reported that the U.S. trade deficit rose to the highest level in six months on a big jump in oil imports.

The outlook for consumer spending also dimmed Thursday after retailers, their sales hurt by rising gasoline prices and the slumping housing market, had one of their worst months ever in April.

"Players have become concerned about whether the global economy will continue to boom as uncertainty about the U.S. economy grows," said Takehiko Jimbo, a senior dealer at Mitsubishi UFJ Trust and Banking Corp.

Traders said the dollar may fall as low as 119 yen if sales data due later in the day turn out to be weak.

The dollar was mostly higher against other regional currencies, climbing to 41.310 Indian rupee from 41.18 the previous day, 8,840 Indonesian rupiah from 8,765, and 47.225 Philippine peso from 47.100.

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Author`s name Angela Antonova