The yen ended Asian trading relatively flat against the US dollar ahead of the Japanese general election on Sunday. However, the dollar weakened against the euro as players continued to fret over whether the US Federal Reserve will still raise interest rates at the next Federal Open Market Committee (FOMC) meeting on Sept 20. At 3.24 pm (0724 GMT) here, the dollar was at 110.50 yen, little changed from 110.51 yen nearly 3-1/2 hours earlier in Tokyo. The euro was at 1.2427 usd marginally up from 1.2422 usd in Tokyo. The yen's movements were dictated by positioning ahead of the elections, widely seen as a referendum on Prime Minister Junichiro Koizumi plans for economic reform, particularly his proposal to break up the post office. Japanese media reported that Koizumi's party continued to maintain a comfortable lead over the opposition in opinion polls. Still, caution prevailed in the market, keeping the dollar within a fairly narrow trading range of 110.35-110.76 in Asian trading. The euro was swung by the debate over whether the FOMC will again raise interest rates by 25 basis points, bringing the benchmark rate to 3.75 pct, and continue doing so until the end of the year. Some doubts have been raised because of the economic damage Hurricane Katrina may done to the US, and the inflation contagion from high oil prices, even though recent comments by Fed officials do not seem to suggest this. UBS forex strategist Ashley Davies wrote in a daily note: "More important for the US dollar than whether or not the Fed chooses to lift rates at this month's meeting is how far and at what pace the Fed will continue to lift rates from November onwards." The US data calendar is relatively light today, with only the import and export price indices due, leaving players with more time to continue speculating on what the Fed might do.