17 October 2001, 09:09 Forex - Dollar little changed in midafternoon Tokyo ahead of Greenspan speech
TOKYO (AFX-ASIA) - The dollar was confined to narrow trading ranges
in cautious midafternoon trading ahead of a speech later today by
Federal Reserve chairman Alan Greenspan, dealers said.
Hachijuni Bank foreign exchange dealer Naoya Kozu said Greenspan's
speech is not likely to provide participants with fresh leads to drive
the dollar out of the present trading range, with the market now
focused on news related to the Sept 11 terrorist attacks and US
retaliatory action in Afghanistan and possible bio-terrorism in the US
and elsewhere.
A local media report said a suspicious envelope containing
unidentified white powder was found at the Osaka municipal government's
building.
Separately, US embassy press officer Alan Holst confirmed that the
US consulate general in western Japan received a suspicious-looking
letter with white powder.
"The market did not show any strong reaction to the news report,
but the plethora of news linked to the Afghan situation is making
people reluctant to take positions aggressively," Kozu said.
The Hachijuni Bank dealer said he expects the dollar to continue to
move in the 119.50-123.50 yen trading range, adding that the downside
will remain firmly supported due to fears of possible intervention by
the Bank of Japan.
The euro was also rangebound against the dollar, with investors
awaiting the speech by Fed Chairman Greenspan, while concerns over the
spread of the anthrax problem to Europe are weighing on the top-side,
dealers said.
"Given the uncertainty over the possible spread of terrorist
attacks to Europe, the euro is not likely to register a sustained and
fully-fledged rebound," Kozu said.
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