The dollar continued its gains in very early Asia with EUR-USD hitting a fresh 2 1/2 month low in early Tokyo trading of 1.2558. Similarly, AUD-USD fell to 0.6333 before bouncing and Kiwi dropped to 0.5061. All three currencies bounced and the session was mostly typified by consolidation with dealings very quiet. There was little reaction to the huge new borrowing requests from GM & Chrysler, now at $39 bln. The Eastern European concerns lingered and continued to fuel negative sentiment in the banking sector which sent Asian stock markets broadly lower. Oil and gold were little changed, with oil remaining under $35 after heavy losses Tuesday and gold trading at $967.70 after the surge on Tuesday. USD-JPY, after being capped at 92.71 in late NY, traded a range of 92.09-92.50 in Asia with Tokyo dealers reporting few flows. Cable consolidated above 1.4200 resisting the fresh pressure seen on the EUR earlier in the session.
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