The New Nation - Internet Edition

AFP, Tokyo

The dollar took a breather in Asian trade on Friday as investors waited for key interest rate decisions from central banks worldwide after weeks of market turmoil, dealers said.

The dollar was steady at 115.91 yen in Tokyo afternoon trade from 115.95 Monday in London. US markets were closed Monday for the Labor Day holiday.

The euro slipped to 1.3617 dollars from 1.3648 but edged up to 157.82 yen from 157.65.

The Australian dollar, which has swung sharply in the recent turmoil, gained after Australia unexpectedly posted the strongest growth in three years in the second quarter.

The Australian dollar firmed to 95.59 yen in Tokyo late trade from 94.42 on Monday and to 0.8247 US dollars from 0.8159.

Traders were looking ahead to central banks' interest rate decisions due later this week in the eurozone, Britain, Australia, Canada and Sweden-and in particular their accompanying statements.

The European Central Bank's meeting Thursday will be the main focus although market players mostly expect the bank to keep interest rates on hold at 4.0 percent after the havoc wreaked by shaky US mortgage markets.

But investors will be closely listening to comments by ECB chief Jean-Claude Trichet and whether he will use the code word "strong vigilance" as he has in the past before deciding to raise rates, dealers said.

Use of those words "will remind market participants the ECB still has a tightening bias, barring further turmoil in the banking sector," said NAB Capital strategist John Kyriakopoulos.

Global markets have been roiled over problems with

"subprime," or credit-risky, US homeowners defaulting on loans, sending banks and funds with such mortgage-backed securities to scramble to cover their losses.

The dollar edged up to 938.40 South Korean won from 937.75 on position adjustment after the won spiked Monday on strong GDP figures.

The dollar was stable at 1.5229 Singapore dollars, 9,385 Indonesian rupiah and 33.05 Taiwan dollars.

The greenback slipped to 32.33 Thai baht from 32.49.