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Dollar moves narrowly at mid-116 yen level in Tokyo trading.

TOKYO, Sept. 25 Kyodo

The U.S. dollar traded narrowly at the mid-116 yen level Monday morning in Tokyo for lack of major trading incentives ahead of a rush of U.S. data later this week.

At noon, the dollar was quoted at 116.36-39 yen, down a bit from Friday's 5 p.m. quotes of 116.51-61 yen in New York and 116.40-43 yen in Tokyo. It traded between 116.35 yen and 116.69 yen in the morning.

The euro was quoted at $1.2801-2804 and 148.97-149.02 yen against Friday's 5 p.m. quotes of $1.2778-2788 and 148.99-149.09 yen in New York and $1.2819-2822 and 149.24-28 yen in Tokyo.

Earlier in the morning, the U.S. currency rose slightly as Japanese importers bought it on the regular settlement day, dealers said.

Investors sold the yen for the dollar also to adjust their positions after seeing the Japanese currency's upside limited last weekend, but the action soon ended as there were no fresh market incentives, they added.

''It is hard for market participants to keep buying the dollar as it is still under pressure after the monthly Philadelphia Fed report last week,'' said Kenichiro Fujita, a derivatives marketing manager with Aozora Bank.

The Federal Reserve Bank of Philadelphia said Thursday the September manufacturing index for the Philadelphia region dropped to minus 0.4 from 18.5 in August, the first negative reading since April 2003. This has prompted market speculation about the possibility of a rate cut on the part of the U.S. Federal Reserve by the year's end at the earliest.

Market participants are also waiting for a series of U.S. economic data to come out later in the week for more clues about the U.S. economic outlook, Fujita added.

This includes August existing home sales to be released later in the day, durable goods, and core personal consumption expenditures for August.
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Publication:Japan Weekly Monitor
Date:Oct 2, 2006
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