/www.fxserver.com/ The dollar was easier in late morning after poor US employment data last week, along with the resignation of key policy officials under the administration of President George W Bush, dealers said.
They said the market remained quiet today on uncertainty over US policy, as well as snowy weather in Tokyo that delayed the arrival of people to work.
Treasury Secretary Paul O'Neill and White House economic adviser Lawrence Lindsey resigned at the end of last week, raising speculation the administration would weaken the long-held strong-dollar policy, dealers said.
"Until President Bush makes an appointment, there will be heavy gyration," said Hideki Naito, managing analyst at MMS, noting speculation over currency policy is offset by hopes the stockmarket could benefit from the resignations.
"Some see it as favourable for the stock or asset markets," he said.
Nevertheless, uncertainty over the US currency policy complicates the recent attempts by Japanese officials to talk down the yen to help boost export competitiveness, dealers said.
"Japanese officials continue to say the dollar/yen's under a (downward) corrective mode. It means they really want to keep the yen weakening but they cannot take any direct intervention," Naito said.
Investors are also cautiously waiting to see the outcome of upcoming US data, he said. "We need to see retail sales and consumer confidence (data) after the awful job data."
US retail sales data is due Thursday after a Federal Reserve meeting on Tuesday at which no change is expected.
Investors noted the dollar dipped to just under 123 yen this morning but found support from domestic investors.
"The low of 123 yen is quite reasonable. Japanese institutional bids are just below 123," Naito said.
Tokyo 10.50 am Sydney 10.00 am New York 3.45 pm
Dollar
yen 123.24 down from 123.43 123.57
sfr 1.4571 up from 1.4568 1.4575
Euro
usd 1.0093 down from 1.0101 1.0094
stg 0.6400 down from 0.6406 0.6405
yen 124.38 down from 124.51 124.76
sfr 1.4706 down from 1.4715 1.4714
Sterling
usd 1.5768 up from 1.5766 1.5749
yen 194.32 up from 194.27 194.64
sfr 2.2975 down from 2.2989 2.2963
Australian dollar
usd 0.5619 down from 0.5633 0.5605
stg 0.3563 down from 0.3573 0.3557
yen 69.24 down from 69.43 69.28
© AFX News