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Dollar mostly in upper 97 yen range in directionless Tokyo deals+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Nov. 12_(Kyodo) _ The dollar traded mostly at the upper 97 yen level Wednesday in Tokyo, with investors remaining tentative ahead of the global financial summit scheduled later this week in Washington. At 5 p.m., the dollar fetched 97.94-97 yen, up moderately from 97.40-50 yen in London at 4 p.m. and 97.64-65 yen in Tokyo at 5 p.m. Tuesday. Comparable data for the New York foreign exchange market was unavailable due to a national holiday. It moved between 97.15 yen and 98.08 yen during the day, changing hands most frequently at 97.55 yen. The euro traded at $1.2603-2606 and 123.46-50 yen versus $1.2545-2555 and 122.15-20 yen in London and $1.2727-2729 and 124.27-31 yen in Tokyo late Tuesday. Dealers said the market was directionless as investors refrained from aggressively shifting their dollar holdings in one direction ahead of the global financial summit. But some dollar-buying was seen on speculation that U.S. and European stocks may rebound later in the day on the back of rises in U.S. stock index futures on the Globex trading system, they said. The U.S. dollar began trading in the upper 97 yen range in the early morning, but briefly slipped into lower 97 yen territory mid-morning. It regained the upper 97 yen zone before noon and edged higher late in the afternoon. Toru Umemoto, chief foreign exchange strategist at Barclays Bank, said that Japanese asset managers buying foreign stocks to "rebalance their portfolios" were another factor underpinning the dollar's firmness as a result. Currency dealers said that such a trend can be seen in a Japanese finance ministry data provided Tuesday, which indicated that investors in Japan remained net buyers of overseas stocks in October, purchasing a net 1,215.1 billion yen worth of stocks. But the currency's upside remained rather limited as there were few fresh market moving data released during the day, dealers said. Bleak outlooks for the global economy, reaffirmed after the World Bank slashed its global growth forecast for 2009, and prospects of narrowing gaps between U.S. and Japanese interest rates were also factors weighing on the dollar, dealers said. On Tuesday, the World Bank said it had cut its growth projection for 2009 to 1 percent, down from an initial forecast of 3 percent in June. The euro, meanwhile, briefly fell to the upper 121 yen range in the morning, its lowest level in two weeks, on heightened speculation that the European Central Bank would further reduce its benchmark interest rates in the near future. Copyright ? 2008 Kyodo News International, Inc. |