TOKYO: The U.S. dollar traded narrowly in the upper 122 yen range Monday morning in Tokyo as market players refrained from active trading ahead of a key eurozone summit later in the day over the Greek debt crisis.
At noon, the dollar fetched 122.79-83 yen compared with 122.65-75 yen in New York and 123.11-13 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.1377-1378 and 139.69-70 yen against $1.1345-1355 and 139.26-36 yen in New York and $1.1316-1318 and 139.31-35 yen in Tokyo late Friday afternoon.
The dollar-yen pair was trapped in a narrow range throughout the morning in Tokyo as market players sat on the sidelines before the outcome of the eurozone leaders’ emergency summit on Greek’s bailout programs in Brussels, dealers said.
“The focus of the market is exclusively on Greece now” after the policy meetings of the U.S. Federal Reserve and the Bank of Japan last week, said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.
While Greek officials are reportedly expected to present fresh fiscal proposals at the summit, it remains unclear whether international creditors would accept it.
The dollar also remained top-heavy after the Federal Open Market Committee meeting of the U.S. central bank did not provide clear timing for an initial hike in U.S. interest rates from the current near-zero levels.
“The FOMC and Fed Chair Janet Yellen’s comments indicated that U.S. interest rate hikes will be gradual in the coming years,” Sakai said.
The euro moved little both against the dollar and the yen, with market players cautiously watching Greek debt developments.
