The US dollar was firmer versus the euro in afternoon trading in Tokyo but a tad softer against the yen as investor sentiment towards the Japanese economy remained upbeat, dealers said. "Foreign investors were persistently buying equities here," said Masahiro Yamashita, senior analyst at currency analysis provider Fisco. Foreigners purchased last week 721.9 bln yen worth of Japanese stocks, the largest amount in the past 17 months, data from the Ministry of Finance showed. "But at the same time, local institutional investors are seen ready to step in to purchase the dollar near the 109 yen mark, which could keep the US unit above that level," he said. At 1.05 pm (0405 GMT), the dollar stood at 110.41 yen, compared to 110.49 earlier in Sydney and 110.54 in late New York trading. One euro was buying 1.2172 usd, against 1.2186 in Sydney and 1.2174 in New York. А better-than-expected August Philadelphia Federal Reserve Activity Index, a key gauge in measuring US factory activity, helped prop up the dollar overnight. Manufacturing activity improved in the Philadelphia area in August, with the index rising to 17.5 from 9.6 in July, above market expectations of 14.0. "The dollar could trade in a range of 109-112 yen on hopes for political stability, so the general election next month will be the next key focus," said Yamashita, referring to the upcoming polls in Japan on September 11.