TOKYO (AFX-ASIA) - The dollar turned lower against the yen and other major currencies in midafternoon trade as sentiment towards the US unit again faltered, after having stabilised earlier this morning, following the multiple terrorist attacks in the US, dealers said. They said major currencies moved in a tight range as investors await how the US markets will react after the attacks. "The news about the terrorist attacks ... basically reduced trading interest among investors," MCM Asia Pacific forex analyst Hiromi Ookawara said. Dealers said weak sentiment towards the dollar will continue for the time being, but with the US unit's downside well-supported by intervention fears. Earlier, local media reported Deputy Finance Minister for International Affairs Haruhiko Kuroda as saying major developed countries are ready to take further action in the forex market if necessary. Ookawara said the dollar may test the 118.3 yen level in the coming week. He also said there is speculation today in the forex market that the Federal Reserve would make an emergency rate cut. "There is a speculation that the Fed will hold a news conference today about an emergency rate cut. But it seems it is only a rumour," Ookawara said. He said investors are focusing on the policy board meeting by the European Central Bank later today, the monetary policy meeting by the Bank of Japan next week, and a possible G7 meeting scheduled for the end of this month. "The ECB, the Fed and the BoJ (injected) large amounts of capital into the financial markets to increase liquidity. If confusion in the market continues, it is likely that the G7 will launch a policy to cope with it," Ookawara said. "If we consider the current emergency situation, it is possible that the BoJ as well as the ECB will decide to ease their monetary policy," he said.