The dollar was pushed higher against the yen in midmorning trade on continued falls on the local equity market, dealers said.Jitsuo Tachibana, a customer dealer at Sumitomo Trust and Banking Co Ltd, said wariness over the trend of the Japanese equity market ahead of the first-half account book close in September, when selling pressure normally grows stronger, is expected to continue to depress the Japanese currency.
"In addition, renewed concerns over verbal intervention by the Japanese authorities are likely to continue to lend some support for the dollar," he said.Finance minister Masajuro Shiokawa said yesterday that he wants the dollar to move "a little higher" against the yen."Even if the authority tries to talk up the value of the dollar, the lingering uncertainty over the trend on the US equity market and possible 'event risk' ahead of the anniversary (of the Sept-11 terrorist attack), are likely to cap the top-side of the dollar," Tachibana said.
Dealers said investors refrained from pushing the dollar sharply higher ahead of the release of US second quarter GDP, as well as consumer spending and personal income data.The euro was easier on news the German Ifo business climate index fell to 88.8 in August from 89.9 in July, contrasting unfavourably with economists' expectations of a drop to 89.5.
"The euro/dollar is most likely to continue to be traded in the 0.9650-$0.99 range, without clear direction," Tachibana said.
Tokyo 10.10 am New York 3.22 pm London 4.15 pm
Dollar
yen 118.84 up from 118.45 118.30
sfr 1.5005 down from 1.4989 1.5003
Euro
usd 0.9793 down from 0.9805 0.9810
stg 0.6386 up from 0.6384 0.6386
yen 116.38 up from 116.15 116.11
sfr 1.4694 down from 1.4698 1.4722//www.ananova.com