Although hopes for an early U.S. economic recovery are receding, the dollar seems likely to hold firm against the yen for the time being.
Several dismal U.S. economic indicators have been ignored in recent weeks, with the market's reaction muted by built-in expectations of bad news.
Indeed, New York stocks continued upward last week, with fears over the fallout from U.S.-led military action in Afghanistan and anthrax attacks in the U.S. going largely unheeded.