TOKYO ( 2008-11-18 09:37:03 ) :The dollar was slightly higher against the yen in Asian trade Tuesday but buyers were scarce after another raft of bad economic and corporate news.

The greenback firmed to 96.49 yen in Tokyo morning trade, up from 96.35 in New York late Monday. The euro fell to 1.2627 dollars from 1.2645 and to 121.84 yen from 121.87.

Market players were digesting news that ailing bank Citigroup will cut its global workforce by 50,000, the latest sign of deteriorating world economic conditions.

US Treasury Secretary Henry Paulson told The Wall Street Journal that he would not use the remainder of the 700-billion-dollar bailout package until the next administration takes office in January. "Markets have come to see that the current administration wants to roll over the financial crisis to the next administration," said Hachijuni Bank forex trader Sho Komamura.

"It has become clearer that the US government has no cohesive or decisive power, as seen in the confusion about helping General Motors. This is negative for the dollar, but this factor has already been priced in," he added.

Democrats in Congress launched a new push to use funds from the Wall Street rescue package to save the US auto industry, but the White House warned against draining money from a huge finance industry bailout.

"Traders are now looking to see how the ailing Big Three of the US auto industry would be able to be saved, and if this pushes up stocks, this could support the dollar," said Komamura. US Federal Reserve Chairman Ben Bernanke was expected to testify in Congress, along with Paulson, but dealers said they had little expectation for cues that would turn around markets.

"The world economy continues to worsen. If only investors could grasp the depth of the problems, they could at least price it in. But at this point they can't," said Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp.



Copyright AFP (Agence France-Presse), 2008