Wednesday, Aug 15, 2012

--Dollar remains in narrow range due to lack of trading factors

--Greenback may rise above Y79.0 if U.S. stocks, Treasury yields rise later in day

--U.S. economic indicators in focus 


 
   By Takashi Mochizuki

The dollar edged up against the yen in Asia on Wednesday but stayed within its recent narrow range as a lack of trading cues prompted investors to focus on short-term trading.

The greenback was at Y78.78 as of 0450 GMT, off its session peak of Y78.90 but higher than Y78.74 in New York Tuesday.

"These short-term investors buy the dollar in the low Y78s and sell in the high Y78s," said Dai Sato, a senior trader at Mizuho Corporate Bank. "Sentiment is bullish but they just don't have enough fresh factors to break the recent range."

Mr. Sato said a clear rise in the dollar above Y79 later Wednesday may only occur if U.S. stocks and U.S. Treasury yields rise in U.S. trading hours.

U.S. economic indicators due later Wednesday--such as the consumer price index, industrial output and manufacturing sentiment data--are the likely drivers of any upside in U.S. equities or bond yields in the short-term, traders said.

According a survey of economists by Dow Jones, the output data, due at 1315 GMT, may show a 0.6% production gain in July from June.

The August Empire State Manufacturing Survey's main index is expected to be at 5 from 7.39 in July. The latter data are out at 1230 GMT.

The euro, meanwhile, was at $1.2323 from $1.2321 in New York and at Y97.07 from Y97.02.

Mizuho's Mr. Sato said "we need positive or negative developments in the European debt crisis to revitalize trade in the euro."

The Wall Street Journal Dollar Index, which measures the dollar against a basket of currencies, was at 71.68 from 71.67. 


 
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT 
 
                         Latest     Previous   %Chg   Daily   Daily    %Chg 
                                    2150 GMT          High    Low      12/31 
Dollar Rates 
USD/JPY Japan            78.77-78       78.72-75  +0.05    78.89    78.72  +2.42 
EUR/USD Euro            1.2323-26      1.2320-23  +0.02   1.2332   1.2318  -4.90 
GBP/USD U.K.            1.5670-74      1.5675-79  -0.03   1.5679   1.5664  +0.84 
USD/CHF Switzerland     0.9745-48      0.9746-50  -0.01   0.9754   0.9742  +3.99 
USD/CAD Canada          0.9919-24      0.9920-25  -0.01   0.9926   0.9920  -2.82 
AUD/USD Australia       1.0471-72      1.0487-91  -0.16   1.0493   1.0466  +2.58 
NZD/USD New Zealand     0.8052-54      0.8051-56   0.00   0.8055   0.8038  +3.56 
 
Euro Rates 
 
EUR/JPY Japan            97.07-12       96.99-07  +0.09    97.23    96.98  -2.47 
 
Source: ICAP PLC

Write to Takashi Mochizuki at takashi.mochizuki@dowjones.com

(END) Dow Jones Newswires

August 15, 2012 01:25 ET (05:25 GMT)