Dollar Tad Higher Against Yen, Euro Ahead of Data

 
   By Hiroyuki Kachi 
 

        The dollar was slightly higher against the yen and the euro in Asian trade Monday, with many market participants avoiding taking strong positions ahead of key data including U.S. labor figures out later this week.
        Around 0150 GMT, the dollar was at Y119.24, compared with Y119.11 late Friday in New York. The euro was at $1.0873 from $1.0891.
        The greenback remained directionless in an extremely tight range between Y119.10 and Y119.33 in early Asia trade. Investors stuck to the sidelines ahead of Wednesday's Bank of Japan tankan corporate sentiment survey and the U.S. ISM manufacturing report, followed by the U.S. jobs data for March on Friday.
        "Investors will find it difficult to make major moves," until these events are out of the way, said Kenji Yoshii, FX strategist at Mizuho Securities.
        Nomura Securities chief FX strategist Yunosuke Ikeda said in a morning note that it may be better for market participants just to engage in dollar buying on dips against the yen with the events looming.
        "It's obvious Federal Reserve Chairwoman Janet Yellen is not seeing a higher dollar as an obstacle for going ahead with a rate increase," said Mr. Ikeda, adding that this may accelerate gains in the dollar if that view becomes the market consensus.
        He also expects U.S. per hour earnings by workers to show relatively strong results, providing another catalyst for a higher dollar.
        Among possible factors pulling the currency in the opposite direction, Mr. Ikeda cited the BOJ's tankan corporate sentiment survey out Wednesday, a poll of companies that may reinforce the view that the inflation outlook in Japan is strong enough to dash remaining hopes among investors for further BOJ easing at the April 30 policy meeting.
        "The dollar will very likely go upward on an upbeat (jobs data) result, especially at a time when many investors consider a rate increase (in the U.S.) still has a way to go," said Mizuho Securities' Mr. Yoshii.
        In another currency trade pair, the euro was at Y129.62 from Y129.86.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.12% at 87.19.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        March 29, 2015 23:11 ET (03:11 GMT)

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