10 October 2001, 09:09 Forex - Dollar rangebound in midafternoon Tokyo on lack of fresh leads
TOKYO (AFX-ASIA) - The dollar was rangebound in midafternoon
trading due to a lack of fresh developments, particularly from the
Afghanistan campaign, dealers said.
However, Nikko Trust and Banking treasury department deputy general
manager Yasuji Yamanaka said the currency maintained the underlying
firm tone on growing hopes that the military operation in Afghanistan
may not be prolonged.
US Defense Secretary Donald Rumsfeld said the US could start
conducting "round-the-clock" strikes against Afghanistan, after
effectively securing air superiority following the initial air strikes.
"But, it is premature to chase the dollar sharply higher beyond the
122 yen level, especially given the risk of a fresh round of terrorist
attacks," Yamanaka said.
"Overall, there is no guarantee that the ongoing military operation
in Afghanistan will end shortly."
The dollar is expected to continue to be well bid below the 120 yen
level, after confirming strong support yesterday, with concerns over
possible intervention also seen providing support to the currency,
dealers said.
The euro found support against the dollar following
technically-driven falls in offshore markets, they said.
"The underlying positive tone of the euro remains intact, and if
there are any fresh developments in the international political scene,
the currency may trend back towards the 0.94-0.95 usd level," Yamanaka
said.
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