SYDNEY (Thomson Financial) - The US dollar was firmer against major currencies in Asian morning trade Thursday with investors awaiting the outcome of the Bank of Japan's policy meeting due later in the day.
Currency traders expect the BoJ to remain cautious though not in a hurry to hike interest rates.
Westpac Banking Corp chief currency strategist Robert Rennie said the BoJ is unlikely to lift its overnight call rate target from 0.5 percent though the accompanying statement is likely to show some concerns that rates may need to be raised in coming months.
He said the BoJ will likely emphasize the need to set rates appropriate to Japan's economic
recovery.
At 11.00 am (0100 GMT), the dollar was trading at 122.29 yen, from 122.04 yen in late New York trade Wednesday, while the euro was at 1.3748 dollars from 1.3784 dollars.
Rennie said the dollar is unlikely to break out of current trading ranges until it becomes clearer where the US economy is heading.
"The fear remains that the problems in the US housing market may spill over into the wider economy," he said.
Sydney 11.00 am (0100 GMT)
US dollar
122.29 yen
1.2052 sfr
Euro
1.3748 usd
168.11 yen
1.6568 sfr
0.6765 stg
Sterling
2.0322 usd
248.51 yen
2.4490 sfr
Australian dollar
0.8628 usd
0.4244 stg
105.49 yen
New Zealand dollar
0.7815 usd
bruce.hextall@thomson.con
bhx/ms
