20 December 2001, 09:34  Forex - Dollar firms in midafternoon Tokyo, profit taking caps gains

TOKYO (AFX-ASIA) - The dollar continued to be firmer against the yen in midafternoon trade but profit taking capped the US unit's advance at the 128.70 level, dealers said. They said the yen has been under pressure prior to the release of the Bank of Japan's monthly financial report as well as reflecting some disappointment towards the central bank's monetary easing decision yesterday. Daiwa Bank customer dealer Nobuki Kawashima said he expects the dollar to reach the 129.00 level against the yen in the remaining days of the year. "Recently, the dollar has tended to rise against the yen when trading volume is thin. It is possible that the dollar will reach the 129.00 level amid thin Christmas trading," he said. He said the crisis in Argentina provided no major negative impact to the dollar as the forex market had priced in the development. "If this crisis spreads to other South American countries, such as Brazil and Mexico, the dollar will definitely encounter selling pressure. But, as it is only a problem in Argentina, I don't see any negative impact from it to the dollar," he said. Kawashima said the yen is also pressured by some disappointment over a decision by the Bank of Japan yesterday to ease its monetary policy. "Some investors expected that there would be some announcement related with foreign bond purchases. But as it was not included yesterday, there seems to be some disappointment," he said. He said that the dollar/yen trading is expected to move in the range of 130-126.80 level for the next week. The euro was rangebound against the yen with no fresh leads, dealers said. Kawashima said the euro will trade firmer against the yen for now, adding that the euro/yen trading will move in the range of 116.00-114.00 for the next wee

© 1999-2022 Forex EuroClub
All rights reserved