By Hiroyuki Kachi
The dollar was slightly higher against the yen and the euro in
Asian trade Monday, with many market participants avoiding taking
strong positions ahead of key data including U.S. labor figures out
later this week.
Around 0150 GMT, the dollar was at Y119.24, compared with
Y119.11 late Friday in New York. The euro was at $1.0873 from
$1.0891.
The greenback remained directionless in an extremely tight range
between Y119.10 and Y119.33 in early Asia trade. Investors stuck to
the sidelines ahead of Wednesday's Bank of Japan tankan corporate
sentiment survey and the U.S. ISM manufacturing report, followed by
the U.S. jobs data for March on Friday.
"Investors will find it difficult to make major moves," until
these events are out of the way, said Kenji Yoshii, FX strategist
at Mizuho Securities.
Nomura Securities chief FX strategist Yunosuke Ikeda said in a
morning note that it may be better for market participants just to
engage in dollar buying on dips against the yen with the events
looming.
"It's obvious Federal Reserve Chairwoman Janet Yellen is not
seeing a higher dollar as an obstacle for going ahead with a rate
increase," said Mr. Ikeda, adding that this may accelerate gains in
the dollar if that view becomes the market consensus.
He also expects U.S. per hour earnings by workers to show
relatively strong results, providing another catalyst for a higher
dollar.
Among possible factors pulling the currency in the opposite
direction, Mr. Ikeda cited the BOJ's tankan corporate sentiment
survey out Wednesday, a poll of companies that may reinforce the
view that the inflation outlook in Japan is strong enough to dash
remaining hopes among investors for further BOJ easing at the April
30 policy meeting.
"The dollar will very likely go upward on an upbeat (jobs data)
result, especially at a time when many investors consider a rate
increase (in the U.S.) still has a way to go," said Mizuho
Securities' Mr. Yoshii.
In another currency trade pair, the euro was at Y129.62 from
Y129.86.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, was up 0.12% at 87.19.
Interbank Foreign Exchange Rates At 21:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 119.23-24 119.14-15 +0.08 119.29 119.13 -0.41
EUR/USD Euro 1.0871-74 1.0888-91 -0.16 1.0890 1.0856 -10.13
GBP/USD U.K. 1.4863-68 1.4879-84 -0.11 1.4886 1.4857 -4.58
USD/CHF Switzerland 0.9624-28 0.9614-18 +0.10 0.9636 0.9612 -3.19
USD/CAD Canada 1.2611-16 1.2610-15 +0.01 1.2633 1.2604 +8.54
AUD/USD Australia 0.7718-22 0.7751-55 -0.43 0.7753 0.7712 -5.52
NZD/USD New Zealand 0.7529-35 0.7565-71 -0.48 0.7568 0.7526 -3.37
Euro Rate
EUR/JPY Japan 129.61-65 129.71-75 -0.08 129.79 129.46 -10.56
Source: ICAP PLC
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com