Currencies

Tuesday May 13, 06:36 AM
Forex - Dollar trading in tight ranges ahead of Bernanke speech, data

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TOKYO (Thomson Financial) - The dollar was trading in narrow ranges against major currencies in afternoon trading on Tuesday,

with investors hesitant to take fresh positions ahead of a series of data this week that could provide further

clues on the magnitude of a U.S. economic slowdown.

Retail sales figures are expected to be released on Tuesday, while consumer price inflation data

will be released on Wednesday and housing starts are due on Friday.

Investors were also waiting for a speech by Federal Reserve Chairman Ben Bernanke for fresh leads on the health of the U.S. economy and where interest rates are headed. Bernanke is due to

speak on Tuesday at a financial markets conference organized by the Federal Reserve Bank of Atlanta.

At 1:45 p.m. (0445 GMT), the dollar was at 103.85 yen, compared to 103.69-103.79 yen in late New York trade. The euro was at $1.5525, compared to $1.5477-$1.5487.

The euro advanced against the dollar on speculation that European monetary authorities may

tolerate a stronger currency, traders said.

'While a slew of economic events this week could move the market drastically, there is also a possibility that we end up with rangebound deals at between 102 and 104 yen as the market currently lacks focus,' said Yosuke Hosokawa, currency dealer at Chuo Mitsui Trust & Banking Co.

Traders are also closely watching developments in Asian markets after a strong earthquake

shook China's Sichuan province, raising worries about reconstruction costs. The death toll from the 7.8-magnitude quake has risen to nearly 10,000, according to China's state media.

Tokyo 1:45 p.m. (0445 GMT)

U.S. dollar

yen 103.85

Swiss franc 1.0450

Euro

U.S. dollar 1.5525

yen 161.26

Swiss franc 1.6224

pound 0.7945

Pound

U.S. dollar 1.9536

yen 202.90