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Dollar trades narrowly at lower 105 yen level after Bernanke comment+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, June 4_(Kyodo) _ The U.S. dollar traded within a tight range at the lower 105 yen level Wednesday morning in Tokyo as buying on U.S. Federal Reserve Board Chairman Ben Bernanke's warning about the weak dollar was partly offset by selling to lock in profits. At noon, the dollar was quoted at 105.13-18 yen against Tuesday's 5 p.m. quotes of 105.04-14 yen in New York and 104.24-26 yen in Tokyo. The euro was quoted at $1.5455-5458 and 162.52-57 yen against $1.5440-5450 and 162.28-38 yen in New York and $1.5584-5586 and 162.45-49 yen in Tokyo late Tuesday. The dollar recovered the 105 yen line overnight in New York, up from the mid-104 yen range, after the Fed chief expressed anxiety about the dollar's weakness via satellite at the International Monetary Conference in Spain. "We are attentive to the implications of changes in the value of the dollar for inflation and inflation expectations," Bernanke said. The Fed chief added that the central bank's policy at present seemed "well positioned," hinting that another interest rate cut is unlikely for the time being. "The news spurred a dollar rally, especially because the remarks came at a time when market players were shunning the dollar" on renewed fears about the health of U.S. financial firms, said Akihiro Tanaka, senior currency trader of the market trading division at Resona Bank. Gaining momentum, the dollar maintained its strength in Tokyo morning trading. The dollar's upside, however, was limited in the morning as the currency met with active selling on the part of Japanese exporters, and short-term investors locking in profits, dealers said. "Bernanke's remark was a dollar-buying incentive, not yen selling," Tanaka said, explaining the modest rise. Looking ahead, currency dealers said that market participants will be focusing on U.S. economic readings such as May U.S. nonmanufacturing-sector data due out later Wednesday and May payroll data to be known later this week to gauge the health of the world's largest economy. Copyright ? 2008 Kyodo News International, Inc. |