By Hiroyuki Kachi
The dollar was slightly higher against the yen and the euro
during Asia trade Monday, with a lack of fresh trading cues leaving
investors with little reason to make any major moves.
Around 0250 GMT, the greenback was at Y123.98 from Y123.89 late
Friday in New York.
The greenback edged up early in the session to Y124.12,
regaining some of the ground lost Friday after disappointing U.S.
employment-cost data cast doubt on a September rate increase by the
Federal Reserve. But stock market weakness in Tokyo and China soon
put a lid on gains. The Nikkei Stock Average was down 0.5% midday,
while the Shanghai Composite Index shed 1.5%.
The dollar "remains directionless in a comfort zone," said Yuzo
Sakai, manager of FX business promotion at Tokyo Forex & Ueda
Harlow, adding that market participants have little choice but to
avoid making major trades in the absence of catalysts.
With the dollar lacking direction, investors are increasingly
shifting their attention to highly anticipated U.S. jobs data for
July on Friday.
"The heightened attention on the upcoming labor data is
unusual," said FPG Securities chief executive Koji Fukaya in a
note.
Hopes remain high among investors that potentially upbeat labor
data could help the dollar break above resistance around the
so-called "Kuroda line" of Y124.60, the dollar level before the
Bank of Japan Gov. Haruhiko Kuroda made comments about the yen in
June. At that time, Mr. Kuroda caused the greenback to slide
roughly Y2 from around Y124.60 after saying the yen was unlikely to
weaken any more in relative terms. He later clarified his position
by saying he was neither trying to assess the nominal exchange rate
nor forecast its future movement.
"We would like to pay attention to the possibility of the dollar
testing Y125," if the labor data proves strong Friday, said Mr.
Fukaya.
The euro was at $1.0977 midday from $1.0985 Friday, while the
common currency was at Y136.09 from Y136.16.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, was up 0.05% at 88.61.
Interbank Foreign Exchange Rates At 22:50 EST / 0250 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 123.98-99 123.89-90 +0.07 124.12 123.89 +3.55
EUR/USD Euro 1.0976-79 1.0982-85 -0.05 1.0987 1.0966 -9.27
GBP/USD U.K. 1.5624-26 1.5621-23 +0.02 1.5633 1.5617 +0.30
USD/CHF Switzerland 0.9658-62 0.9659-63 -0.01 0.9674 0.9654 -2.85
USD/CAD Canada 1.3115-20 1.3088-93 +0.21 1.3135 1.3091 +12.87
AUD/USD Australia 0.7303-07 0.7302-06 +0.01 0.7313 0.7290 -10.60
NZD/USD New Zealand 0.6586-92 0.6587-93 -0.02 0.6592 0.6573 -15.47
Euro Rate
EUR/JPY Japan 136.07-11 136.07-11 0.00 136.21 136.02 -6.11
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com