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.

© 1999-2022 Forex EuroClub
All rights reserved