The US dollar rose against other major currencies in Asia on Thursday, approaching four-month highs against the yen, after Washington unveiled a new plan to shore up the troubled US housing sector.
European currencies were weighed down by expectations that the European Central Bank and the Bank of England will reduce their key lending rates when they meet later in the day.
The dollar gained to 99.21 yen in Tokyo morning trade, up from 98.98 in New York late Wednesday, when the greenback hit 99.49 at one point, the highest level since early November.
The euro fell to 1.2619 dollars from 1.2657 and to 125.22 yen from 125.29.
"The dollar continues to be supported by the view that the United States is taking stimulus measures faster than other economies," Hachijuni Bank chief forex strategist Masatsugu Miyata said.
Investors were encouraged by Washington's launch of a 75-billion-dollar scheme to stem rising home foreclosures.
Traders were monitoring the start of China's annual session of parliament, where Premier Wen Jiabao said China would weather the global economic crisis with eight per cent economic growth this year.
Wen struck an upbeat tone but he did not unveil any new stimulus package in addition to the one outlined in November.
Players were also focused on central bank meetings in Europe. The ECB was expected to cut its key lending rate by 50 basis points to 1.5 per cent, the lowest level in the bank's 10-year history, while the Bank of England was expected to trim interest rates by half a percentage point to 0.5 per cent.
Investors will be closely watching whether the central banks will announce a set of unorthodox tools to fight the credit crunch and boost the money supply, dealers said. The pound dropped to 1.4157 dollars from 1.4195.
Markets are also fearful of a particularly bad US labour report on Friday, after a private sector survey showed 697,000 job losses in February.
European currencies were weighed down by expectations that the European Central Bank and the Bank of England will reduce their key lending rates when they meet later in the day.
The dollar gained to 99.21 yen in Tokyo morning trade, up from 98.98 in New York late Wednesday, when the greenback hit 99.49 at one point, the highest level since early November.
The euro fell to 1.2619 dollars from 1.2657 and to 125.22 yen from 125.29.
"The dollar continues to be supported by the view that the United States is taking stimulus measures faster than other economies," Hachijuni Bank chief forex strategist Masatsugu Miyata said.
Investors were encouraged by Washington's launch of a 75-billion-dollar scheme to stem rising home foreclosures.
Traders were monitoring the start of China's annual session of parliament, where Premier Wen Jiabao said China would weather the global economic crisis with eight per cent economic growth this year.
Wen struck an upbeat tone but he did not unveil any new stimulus package in addition to the one outlined in November.
Players were also focused on central bank meetings in Europe. The ECB was expected to cut its key lending rate by 50 basis points to 1.5 per cent, the lowest level in the bank's 10-year history, while the Bank of England was expected to trim interest rates by half a percentage point to 0.5 per cent.
Investors will be closely watching whether the central banks will announce a set of unorthodox tools to fight the credit crunch and boost the money supply, dealers said. The pound dropped to 1.4157 dollars from 1.4195.
Markets are also fearful of a particularly bad US labour report on Friday, after a private sector survey showed 697,000 job losses in February.
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