The U.S. dollar traded narrowly near the
The euro was quoted at
After drifting in a tight range in overseas trading overnight, the dollar continued to trade without clear direction in
Traders were awaiting the Japanese Cabinet's approval of a new economic growth strategy scheduled for the early evening, dealers said.
Since a draft of the strategy was already released earlier this month, a sharp market reaction was viewed as unlikely but market players were keen to see how it has been fleshed out, with attention on a corporate tax cut as well as pension and labor market reforms, dealers said.
"Volatility in the dollar-yen exchange rate remains very low," said
"Unless U.S. Treasury yields rise at a gradual pace, it would be difficult to expect the dollar to rise" beyond its recent boxed range around
Compared with the new economic growth strategy, upcoming economic data, including U.S. price data on personal consumption expenditures in May, due out Thursday, and Japanese consumer prices, also for May and due out Friday, are expected to play a greater role in determining the near-term outlook for the dollar-yen exchange rate, said
"If the (Japanese) data show a rapid acceleration of inflation, it will further undermine expectations for additional monetary easing by the BOJ and pressure the dollar versus the yen," he said, adding the upcoming U.S. price data could also provide hints as to when the Federal Reserve will start raising interest rates.
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