TOKYO (AFX-ASIA) - The dollar was higher against the yen in relatively quiet midafternoon trade on the back of falls in the local equity market, dealers said. The US currency extended its gains as the Nikkei 225 index fell further, losing more than 200 points by midafternoon. Dealers said the fall in the yen may have also been due to Finance Ministry director-general Zenbei Mizoguchi comment that he does not see a situation at the moment where the yen would rise actively. "Investors will continue their stance to buy the dollar actively, as they are now pretty sure that the downside of the dollar is supported after the (Mizoguchi) comment," Aozora Bank deputy manager of forex trading group Hiroyoshi Kinoshita said. However, the dollar may not be able to extend its advance to rise sharply given the pressures arising from dollar-selling by exporters, he said, adding that the dollar/yen is expected to move within the range of 131.00-134.00 next week. "Because of the continued political uncertainty in the Middle East, and the selling of dollars by exporters, I don't think the dollar will rise sharply in the near future," he said. Investors are also taking a wait-and-see stance ahead of US Secretary of State Colin Powell's peace mission in the Israeli-Palestinian conflict, dealers said. Kinoshita also said the outcome of the Financial Services Agency's special inspection into banks is unlikely to present any major surprises. "Some investors are expecting some positive surprises from the outcome. But, I think that the news (would have) already been digested by the market," he said. The euro was little changed against major currencies in the absence of new leads, dealers said. Kinoshita said there is a very strong euro/dollar resistance at 0.8875-0.8880, adding that "if the euro breaches that level, the European unit will rise very sharply". However, he said there is very little chance for the euro to breach that level, adding that the euro/dollar will likely move within the range of 0.8700-0.8900 next week.