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Dollar’s upside capped below ¥112.30 before release of key U.S. data


The dollar gave up initial gains to fall back below ¥112.30 in Tokyo trading Thursday, with traders awaiting key U.S. inflation and retail data to be released Friday, following the overnight release of minutes of the U.S. Federal Reserve’s policy-setting meeting last month.

At 5 p.m., the dollar stood at ¥112.22-23, slightly down from ¥112.28-28 at the same time Wednesday. The euro was at $1.1866-1866, up from $1.1826-1826, and at ¥133.17-18, up from ¥132.79-80.

The greenback traded around ¥112.40 in the morning after climbing as high as around ¥112.50 in overseas trading Wednesday.

In the afternoon, the dollar selling somewhat strengthened as the benchmark 225-issue Nikkei stock average cut gains while long-term U.S. Treasury yields sagged in off-hours trading.

“Overall, the dollar was stuck in a limited range as traders lacked cues,” an official at a foreign exchange brokerage house said.

“It’s difficult to move actively” before checking the upcoming U.S. economic indicators, an official at a major Japanese bank said.

The minutes of the Sept. 19-20 Federal Open Market Committee meeting were largely in line with market expectations, having no major impact on currency markets, traders said.

Meanwhile, the euro extended its rally versus the dollar and the yen on receding worries over the independence movement in Catalonia, Spain.