REFILING: Dollar trades narrowly at lower 108 yen level in Tokyo morning.
TOKYO, Sept. 4 Kyodo
(EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. : FIXING ECB'S KEY INTEREST RATE AT 6TH GRAF)
The U.S. dollar moved narrowly at the lower 108 yen level Thursday morning in Tokyo, as investors refrained from active trading ahead of the European Central Bank's policy meeting later in the day.
At noon, the dollar fetched 108.08-13 yen against 108.25-35 yen in New York and 108.90-91 yen in Tokyo at 5 p.m. Wednesday.
The euro traded at $1.4495-4498 and 156.70-75 yen versus
$1.4492-4502 and 156.95-157.05 yen in New York and $1.4420-4421 and 157.04-08 yen in Tokyo late Wednesday.
The dollar stayed within a narrow range against the yen as investors were focused on the economic conditions in Europe ahead of the ECB's rate decision later in the day, dealers said.
''There is actually no buying incentive for the dollar or the yen at this point,'' said Toru Umemoto, chief foreign exchange strategist in Tokyo at Barclays Bank.
The euro kept its weak note against the dollar and the yen on wariness that the central bank may soften its hawkish stance, although most analysts expect it to keep the key interest rate unchanged at 4.25 percent, dealers said.
Investors will be watching whether recent sluggish economic indicators in Europe will cause any moderations in the tone of ECB See electronic code book. President Jean-Claude Trichet when he holds a press conference after the policy meeting, they added.
Eurostat, or the Statistical Office of the European Communities, reported Wednesday that retail sales in the eurozone Eurozone
same as Euroland
Eurozone n → eurozona, zona euro
Eurozone n → zona euro fell 2.8 percent in July from a year before. It also said the eurozone economy saw its first ever quarterly contraction in April-June period, confirming its initial announcement made mid-August.
Also being watched is a rate announcement by the Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. also slated later in the day, Umemoto said.
''Market players are focusing more on the BOE which they speculate will announce a rate cut on the bleak British economy,'' which may trigger further selling of the British pound and the euro as well, he said.
The selling of the pound and the euro was triggered earlier this week by British Chancellor of the Exchequer Chan·cel·lor of the Exchequer
The senior finance minister in the British government and a member of the prime minister's cabinet.
Chancellor of the Exchequer
Brit Alistair Darling's bleak remarks about the British economy, which eventually led to broad selling of high-yielding currencies against the lower-yielding yen, dealers said.