TOKYO (AFX-ASIA) - The yen turned lower against the dollar in midafternoon trade, after Chief Cabinet Secretary Yasuo Fukuda dismissed reports Bank of Japan governor Masaru Hayami urged Prime Minister Junichiro Koizumi to decide quickly whether to inject public funds into the banking system, dealers said. "Hayami talked about the current financial situation (to Koizumi), not particular topics. There were no talks about capital injections into banks between the two," Fukuda was quoted as saying by local media. According to local media reports earlier, Hayami urged Koizumi to make a quick decision on an injection of public money into major banks. Fukuda said a capital injection into the banking system is not needed at this stage. A dealer at a local Japanese bank said he does not expect the government to decide on the matter anytime soon. "I don't think the government is in a hurry to reach a final decision so that it can inject capital into banks before the end of the current fiscal year," the dealer said, adding that such capital injection news would only have a short-term positive impact on the yen. The dealer said he expects dollar/yen will be rangebound for the time being, as investors will try to avoid both currencies. "I think the dollar will also be pressured for the time being, on expectations US equities will be volatile, owing to uncertainty stemming from the Enron accounting scandal. If you consider these two uncertainties in Japan and the US, I think that dollar/yen will move in the current range for the time being." The dealer said he views the current dollar/yen rannge as 132.50-135.50 and he does not see any break outside of this happening over the next week. He also said the euro may benefit from the uncertainty in the US and Japan. "The US and Japan have economic uncertainty at the moment. This will perhaps accelerate euro buying," the dealer said, adding that the euro may reach the 0.9000 level against the dollar, if it breaks above 0.8800.