Dollar Flat Against Yen, Euro Ahead of U.S. Data, Yellen

 
   By Hiroyuki Kachi 
 

        The dollar was almost flat against the yen and the euro in a rangebound Asia trade Tuesday, with cautious investors avoiding taking strong positions ahead of events in the U.S. that could shape investor views on any likely decision by the Federal Reserve to lift short term rates this year.
        Around 0450 GMT, the dollar was at Y123.52, compared with Y123.45 late Monday in New York.
        The dollar was also flat against the euro with the common currency changing hands at $1.1004, compared with $1.1000 in New York.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was unchanged at 87.78.
        With signs that worries about the Greek bailout crisis and instability in China stocks are retreating, market sentiment has cleared up to help improve risk taking sentiment. That prompted investors finally look set to shift their focus on the Fed's plan to start lifting its benchmark rate from near zero later this year.
        Eurozone leaders have reached an agreement to provide further aid to Greece, minimizing concerns that the debt-strapped country would leave the eurozone and roil markets over the short term.
        Meanwhile, the Shanghai Composite Index was last trading 0.3% lower Tuesday after a three-day winning streak. In Tokyo, the benchmark Nikkei Stock Average was up 1.6% midday.
        The dollar remained steady as it strengthened to a high of Y123.74 earlier in the session, said Yuzo Sakai, manager of FX business promotion at Tokyo Forex & Ueda Harlow. But "we aren't seeing that much of a dollar-buying, yen-selling mood," adding that "there is no need to make major moves now," ahead of the release of the U.S. retail sales for June later today and Fed chairwoman Janet Yellen's testimony to Congress later this week.
        Mr. Sakai said after falling as low as Y120.41 last week and then bouncing back, it's natural to see selling to lock in profits or position adjustments ahead of these events.
        Among other currency pairs, the euro was at Y135.92 from Y135.81.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        July 14, 2015 01:06 ET (05:06 GMT)

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