/

Dollar static ahead of G-7 summit

JIJI

The dollar traded in a narrow range around ¥102.50 in Tokyo trading Monday as a wait-and-see mood grew before a Group of Seven summit to be held in the Netherlands later in the day.

At 5 p.m., the dollar stood at ¥102.54-55, up from ¥102.36-37 at the same time Thursday. The euro was at $1.3826-3826, down from $1.3838-3840, and at ¥141.50-54, down from ¥141.66-73. The Tokyo market was closed Friday for a national holiday.

In overseas trading Friday, the dollar briefly fell to levels near ¥102 on position-adjustment selling. Although the greenback later attracted demand, its upside was capped due partly to a drop in U.S. long-term interest rates.

After moving around ¥102.20 in early morning trading in Tokyo, the dollar gained ground moderately thanks to a rise in Tokyo stock prices.

On renewed purchases, the dollar rose to near ¥102.60 at one point.

An official at a foreign exchange margin trading service firm said that “some market participants apparently ended up covering dollar-short positions as stocks gained further ground” despite weaker than expected readings in the HSBC China manufacturing purchasing managers’ index for March.

In the afternoon, the dollar was briefly hit by position-adjustment selling as stocks failed to extend gains.

Dollar-yen trading was range-bound at levels around 102.50 after European players joined trading in late hours.

A major foreign bank official said that “the dollar is unlikely to chase higher ground for now” due to a fall in U.S. long-term interest rates following a rise triggered by U.S. Federal Reserve Chairwoman Janet Yellen’s remarks last week that suggested an early interest rate increase in the United States.

“Currency players are cautious about increasing risk exposure just before the G-7 summit,” an official at a foreign exchange broker said.

“Market participants retreated to the sidelines to see details of additional sanctions expected to be imposed against Russia by the G-7 leaders” over the crisis in Ukraine, an official of a major Japanese bank said.