26 August 2002, 10:13  Forex - Dollar easier in midmorning Tokyo on concerns over US economy

The dollar was easier against the yen in midmorning trade reflecting wariness about the near-term outlook of the US economy and caution ahead of a raft of US data this week, dealers said.
In the US, closely-watched data such as July durable goods, the August Conference Board survey of consumer confidence and the revised second-quarter GDP will be released this week.
Minori Takeuchi, foreign exchange analyst at JP Morgan Chase, said there are concerns that US economic data due out this week will show unimpressive economic performance there.
"But any weak outcome ... is likely to revive (expectations for) rate cuts by the US Fed and that will support the downside of the dollar," she said.
The dollar is also expected to remain firm against the euro on concerns over the outcome of eurozone economic figures due out this coming week, including the pivotal Ifo business climate index for August, dealers said.
"Even so, the euro is expected to remain supported at around the $0.9650 level," Takeuchi said.
In Japan, GDP and unemployment data will also be released this week.
Local economists forecast Japan's second quarter GDP will show continued export-oriented, modest recovery, with a consensus forecast of a 0.2% growth over the previous quarter.
"As the confidence in the dollar is gradually improving, the market may react more negatively to a weak outcome of Japanese data," Takeuchi said.
"In addition, foreign investors appear to be becoming more wary of delay in reform policy in Japan and of falling share prices."

Dollar
yen 119.54 down from 119.57 119.52
sfr 1.5125 down from 1.5134 1.5130
Euro
usd 0.9726 down from 0.9728 0.9728
stg 0.6386 down from 0.6400 0.6397
yen 116.26 down from 116.32 116.32
sfr 1.4711 down from 1.4722 1.4715//www.ananova.com

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