Dollar edges down in Asia

TOKYO: The dollar eased against the yen in Asia on Thursday after rising to its highest levels in three weeks as Japanese exporters sold the greenback, dealers said.

The dollar bought 81.55 yen in Tokyo morning trade, after topping 81.80 yen earlier Thursday.

The dollar traded at 81.64 yen in New York late Wednesday.The dollar lost ground due to selling by Japanese exporters, a senior dealer at a major Japanese bank told Dow Jones Newswires.

Although selling pressure has waned from the exporters in recent weeks after the massive March earthquake disrupted Japan's production activities, "they still get some dollars to sell from their regular activities," he said.

The euro fetched $1.4281 in Tokyo morning, up from $1.4236. Against the yen, the euro traded at 116.47 yen compared with 116.38 yen in New York.

The yen moved little after government data showed a much larger than expected decline in Japan's January-March gross domestic product (GDP) due to the impact of the March earthquake, tsunami and a nuclear crisis.

Official data released early Thursday showed Japan's economy plunged back into recession in January-March, contracting by a much worse-than-expected annualised 3.7 percent in the first three months of the year.But attention is to be focused more closely on the expected broader impact for the April-June quarter and intervening monthly trade data, said Daisuke Karakama, market economist at Mizuho Corporate Bank.

"If the trade data shows Japan's exports deteriorating, the yen will likely weaken further because of demand-supply issues," he said.

The dollar eased in New York as Europe continued to battle over a Greek debt restructuring and new data showed the US central bank still largely unconcerned about inflationary pressures.

Minutes from the US Federal Reserve's April policy meeting showed very little concern over inflation from most Fed governors and also gave scant evidence for a quick move toward tightening. (AFP}

Osama fosters Arab revolt in posthumous message

WASHINGTON: Al Qaeda has released a message from slain leader Osama bin Laden praising the revolutions in Egypt and Tunisia and urging Muslims to take advantage of a "rare historic opportunity" to rise up, US monitors said.

The 12-minute, 37-second audio message posted on jihadist forums on Wednesday by Al Qaeda's media arm As-Sahab addresses Muslims on the revolutions sweeping the Middle East and North Africa, SITE Intelligence said.

Speaking from beyond the grave in the posthumous message, Bin Laden recommends setting up a council to offer revolutionary advice and decide the best timing to spread revolt across the Muslim world.

"A delay may cause the opportunity to be lost, and carrying it out before the right time will increase the number of casualties," bin Laden says in the audio message, according to SITE's translation.

"I think that the winds of change will blow over the entire Muslim world, with permission from Allah."

A covert US Navy SEAL team killed bin Laden on May 2 at his Pakistan compound in Abbottabad before burying him at sea. (AFP)

US apologizes Pak over drone attacks

ISLAMABAD: The United States has formally apologized Pakistan over drone attacks, Geo News reported on Tuesday.

According to sources, the US apologized civil and military leadership of Pakistan over the drone strikes that killed nine people in North Waziristan on Monday.

The sources added that these strikes were scheduled before the visit of US Senator John Kerry.

The US has stated that it would work together with Pakistan on any future operations in the country.

Bin Laden was a US prisoner before being killed: Iran

TEHRAN: Al-Qaeda founder Osama bin Laden was a prisoner in US custody for "sometime" before he was killed by the American military, Iranian President Mahmoud Ahmadinejad said on Sunday.

"I have exact information that bin Laden was held by the American military for sometime... until the day they killed him he was a prisoner held by them," the president said in a live interview on Iranian state television.

"Please pay attention. This is important. He was held by them for sometime. They made him sick and while he was sick they killed him," Ahmadinejad added.

He accused US President Barack Obama for announcing the Al-Qaeda leader's death for "political gain."

"What the US president has done is for domestic political gain. In other words, they killed him for Mr Obama's election and now they are seeking to replace him with someone else," Ahmadinejad said without elaborating.

Bin Laden was shot dead on May 2 in a US commando raid on a heavily fortified compound near Islamabad, Pakistan.

On May 4, Iranian Defence Minister Ahmad Vahidi too had cast doubt on bin Laden's death, saying there were "ambiguities" over the way he was killed.

The Americans "said they threw his body in the sea. Why did they not allowed an independent expert to examine the body to say if it was bin Laden or not?" Vahidi said. (AFP)

Saudi diplomat shot dead in Karachi

KARACHI: A Saudi diplomat was killed in a drive-by shooting near the consulate in Karachi on Monday, the second attack on Saudi interests in Pakistan's biggest city in less than a week, officials said.

The motive of the attack was not immediately clear, but authorities said they were investigating whether it was connected to the death of Saudi-born Osama bin Laden, who was killed by US forces in Pakistan on May 2.

An official from the media section of the Saudi embassy identified the man as a Saudi diplomat. Karachi police named him as Hassan al-Khatani.

Police said that the Saudi had been driving a vehicle with diplomatic plates when two motorcycle riders unleashed a hail of gunfire at a crossroads in Defence.

"The consulate employee died of multiple bullet wounds on the spot," said Inspector General of Sindh Police Fayyaz Ahmad Leghari.

"The attackers fled on the motorbike," he added. "At this moment, we can't say who killed him," Leghari said.

Provincial home ministry official Sharfuddin Memon identified the dead man as a junior officer at the consulate.

"We are investigating if it was linked to the Abbottabad operation or was an isolated incident," he said.

Last Wednesday, drive-by assailants threw two grenades at the consulate in Karachi in what officials said could have been reaction to bin Laden's death.

But there was no claim of responsibility for the attack.

Saudi Arabia condemned the grenade assault a "terror attack" and said it had "full confidence" in Pakistan's ability to arrest the assailants, bring them to justice and provide the necessary protection to the Saudi mission. (AFP)