By Hiroyuki Kachi 
 

TOKYO--The dollar was slightly higher against the yen and the euro Thursday in Asia trade, with steadier stock market performance giving a sense of safety to investors after recent China-induced market selloffs.

At around 0530 GMT, the dollar was at Y120.43, compared with Y120.33 late Wednesday in New York. The U.S. currency was also stronger against the euro, which fell to $1.1220 at midday from $1.1228 late Wednesday.

The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.08% at 88.64.

Earlier in the session, the dollar was higher, tracking overnight strength on steadier stock markets in the U.S. The dollar then slid to as low as Y120.31, with the benchmark Nikkei Stock Index paring earlier gains, but managed to recoup much of its earlier losses later in the session.

The dollar's upside has been capped below its key technical resistance of its 200-day moving average, or Y120.80, with no fresh trading cues in particular other than a mild recovery in the stock market in Tokyo, a factor causing selling of the Japanese currency because of its perceived safety.

The benchmark Nikkei Stock Average was up 1.3% at midday after a three-day losing streak.

Investors have found it difficult to take strong positions ahead of the closely-watched August U.S. jobs data scheduled for Friday, which is expected to give more clarity on whether the Federal Reserve will raise short-term interest rates, potentially later this month.

But after Chinese stock markets' swings recently, currency market investors were getting a break as Chinese exchanges were closed for public holidays on Thursday and Friday.

"It's difficult to move (today or tomorrow) as Chinese markets are not opening," said Toshihiko Sakai, senior manager of the forex and financial products trading division at Mitsubishi UFJ Trust and Banking Corp., adding that investors "are taking a breather for now."

Given the downward price pressure from recent market selloffs and a softening in commodity prices, investors are now watching for comments that European Central Bank chief Mario Draghi will make at a press conference after the ECB's policy-setting meeting later today.

"I don't think the ECB will act at this time," said Mr. Sakai. "But we can't ignore what comments ECB officials will make," about any debilitating effect on the eurozone economy from China's slowdown and deflationary pressure.

Speaking at the Federal Reserve Bank of Kansas City's Jackson Hole conference Saturday, ECB Vice President Vitor Constancio said the ECB's stimulus policies should help bring eurozone inflation back toward the target, provided the measures boost demand and bring economic output in Europe back toward its appropriate level.

In other currency trade, the euro was at Y135.23 compared with Y135.09 late Wednesday.

 
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT 
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           120.54-55      120.33-34  +0.18   120.70   120.30  +0.69 
EUR/USD Euro            1.1219-22      1.1225-28  -0.05   1.1230   1.1206  -7.26 
GBP/USD U.K.            1.5294-96     1.5298-300  -0.03   1.5314   1.5289  -1.82 
USD/CHF Switzerland     0.9693-97      0.9690-94  +0.03   0.9708   0.9686  -2.49 
USD/CAD Canada          1.3265-70      1.3268-73  -0.02   1.3279   1.3260 +14.16 
AUD/USD Australia       0.7017-21      0.7036-40  -0.27   0.7062   0.7002 -14.10 
NZD/USD New Zealand     0.6343-49      0.6345-51  -0.03   0.6374   0.6340 -18.59 
 
Euro Rate 
 
EUR/JPY Japan           135.23-27      135.07-11  +0.12   135.39   135.03  -6.69 
 
Source: Tullett Prebon 
 
 

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

(END) Dow Jones Newswires

September 03, 2015 02:08 ET (06:08 GMT)