The US Dollar Index

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Forex - US dollar higher vs yen, euro in range trading ahead of BoJ verdict
Monday, February 19, 2007 7:49:49 PM

SYDNEY (XFN-ASIA) - The US dollar was firmer against the yen and euro as currency markets take an extended break with several key Asian cities still closed for the Lunar New Year holidays and New York only resuming later


in the day after the Presidents Day weekend, dealers said.


Currency pairs are likely to trade in narrow ranges with few key economic data due for release tonight and investors more interested in the Bank of Japan's interest rate decision out tomorrow.


At 11.23 am Sydney (0023 GMT), the dollar was at 119.69 yen compared to 119.59 in late trades in London, while one euro was buying 1.3153 usd, down from 1.3159.


The euro was barely changed in overnight trading, while the yen weakened on expectations the BoJ will announce tomorrow that its key overnight rate will remain at 0.25 pct following a two-day policy meeting that starts this afternoon.


Dealers said this was shown in yesterday's monthly economic report by Japan's Cabinet Office which maintained its outlook that the economy is recovering from stagnation but household spending is weak.


Dealers said although the BoJ wants to normalize its very low interest rates, political pressure and softer data are ensuring the central bank is unlikely to lift rates this month.


In the US tonight, the weekly ABC consumer confidence survey and a speech by Federal Reserve governor Susan Bies are likely to garner little attention from currency traders.