NEW YORK, May 4 — The dollar maintained gains, climbing for a fourth day versus Australia’s currency before updates on manufacturing from China to Indonesia. Copper futures dropped.

The Australian dollar slipped 0.2 per cent to 78.35 US cents by 7:26 a.m. in Tokyo, following a 0.6 per cent rebound in the Bloomberg Dollar Spot Index Friday, as Treasuries slumped. Futures on the Standard & Poor’s 500 Index were little changed, while contracts on Asian indexes were mixed with Japanese and Indian markets closed for holidays. Copper futures slid 0.8 per cent to US$2.9065 (RM10.445) a pound.

US oil was at US$59.23 a barrel.

The dollar reasserted itself Friday following its April retreat, rallying against major peers as two Federal Reserve officials said US interest rates could be raised at any time. Traders had dialed back bets on policy tightening amid mixed economic data. A private gauge of Chinese manufacturing is expected to show further contraction in the sector Monday, with local markets resuming following Friday’s holiday. Australia reports on building approvals before a rate review Tuesday.

The Fed commentary “did seem to give some much-needed support to dollar bulls, whose confidence has been flagging throughout April,” Raiko Shareef, a markets strategist in Wellington at Bank of New Zealand Ltd., wrote in an e-mail to clients. “Both indicated that a June rate hike remains on the table.”

Cleveland Fed President Loretta Mester told reporters Friday that “all meetings are on the table” for the first rate increase in nine years. John Williams, chief of the San Francisco Fed, said policy makers would be making judgments at each gathering based on the latest economic data.

Dollar moves

The Federal Open Market Committee, which has held the main US rate near zero since December 2008, said in its policy statement last week that some of the restraints to the economy would ease and give way to “moderate” growth.

Bloomberg’s dollar index, a gauge of the currency versus 10 major counterparts, lost 3 per cent in April, its first decline since June last year, amid speculation signs the recovery is faltering will spur the Fed to put off rate increases.

The euro was little changed today at US$1.1195 after slipping 0.2 per cent Friday, trimming its advance in the week to 3 per cent.

Greece and its creditors remain far apart on an agreement over a reform agenda, with differences on everything from fiscal assumptions to asset sales remaining following four days of negotiations, three people familiar with the talks said. Still, progress has been made in a much-improved atmosphere, they said. The people spoke on condition of anonymity as the talks are confidential.

Negotiations resume today.

Asian Futures

The yen was at 120.17 per dollar after sliding 0.6 per cent Friday. Japanese markets are closed through Wednesday for a string of holidays. The Topix index dropped 0.5 per cent Friday, bringing its two-day retreat to 2.6 per cent, with markets from China to Hong Kong and South Korea closed for the May 1 holiday. The MSCI Asia Pacific Index lost 0.3 per cent.

Futures on the Hang Seng Index in Hong Kong were down 0.1 per cent in most recent trading, and contracts on the Hang Seng China Enterprises Index, a gauge of mainland stocks listed in the city, fell 0.3 per cent. Kospi index futures in Seoul slipped 0.4 per cent, while contracts on Australia’s S&P/ASX 200 Index rose 0.6 per cent.

New Zealand’s NZX 50 Index, the first major equity measure to start trading each day in the Asia-Pacific region, dropped 0.4 per cent in Wellington. The New Zealand dollar was little changed at 75.25 US cents following a 0.9 per cent retreat last week.

Benchmark Treasuries sank Friday, capping their worst week since March, as a rout in European sovereign debt dimmed the allure of relatively higher US yields. Rates on 10-year Treasury notes jumped eight basis points, or 0.08 per centage point, to 2.12 per cent Friday, bringing their climb in the week to 21 basis points.

Gauges on manufacturing are also due today for South Korea, Taiwan, Vietnam and India. Thailand, Malaysia and the UK also are closed for holidays. — Bloomberg