/www.fxserver.com/ The dollar/yen eased in thin, late morning trade towards the year-end, with continued concerns over the outlook for the US economy and the strong-dollar policy of the US administration, dealers said.
"Trading is very thin and the dollar is heavy. But the market is really directionless. For today, there are not many new leads in the market," said Mitsuru Sahara, foreign-exchange vice president at UFJ Bank.
"The dollar has remained under pressure after it fell sharply in overseas markets last week," he said, noting fears over the economic outlook in the US, and uncertainty over whether the US has weakened its strong-dollar policy.
"The currency is starting to look attractive but there are still a lot of market participants who failed to sell the dollar last week and are trying to sell it now," he added.
"Participants are waiting for (Japanese) authorities to say something that can be seen as a market-moving incentive. But then again, another verbal intervention by the Japanese government might not do much to the market."
Japanese authorities have repeatedly said they believe the yen should weaken but may face criticism from foreign countries if they actually intervene in the market to weaken the currency.
"If US officials express their support for the strong dollar, it could buoy the dollar. But it is unlikely that American authorities will issue any special statement like that today," Sahara said.
Investors have speculated the US government will remain tight-lipped on the dollar policy, instead allowing the currency to depreciate through a policy of benign neglect in a bid to boost exports and revive the economy.
However, a sharp fall in the dollar could cause a reversal of investment inflows to the US, making it difficult for the country to finance its large current-account deficit.
Tokyo 11.00 am Sydney 10.40 am New York Friday 3.30 pm
Dollar
yen 120.45 down from 120.65 120.49
sfr 1.4456 up from 1.4432 1.4443
Euro
usd 1.0215 down from 1.0232 1.0224
stg 1.6432 down from 1.6438 0.6431
yen 123.03 down from 123.44 123.20
sfr 1.4766 down from 1.4768 1.4770
Sterling
usd 1.5880 down from 1.5896 1.5882
yen 191.27 down from 193.93 191.37
sfr 1.2956 up from 2.2916 2.2945
Australian dollar
usd 0.5654 down from 0.5658 0.5646
stg 0.3560 up from 0.3559 0.3553
yen 68.10 down from 68.18 68.04