By Hiroyuki Kachi
The dollar was slightly higher against the yen and the euro in Asian trade on Tuesday, with many investors sitting on the fence ahead of major events later this week ranging from the OPEC meeting on Wednesday to Italy's national referendum on Sunday.
The greenback climbed as high as Y112.25 after falling to Y111.62 in early morning trade. Around 0450 GMT, the U.S. currency was at Y112.01, compared with Y111.92 late Monday in New York.
The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was up 0.09% at 91.53. The euro was at $1.0598 from $1.0612 late Monday.
"It seems investors are taking a wait-and-see stance right now," said Shusuke Yamada, chief FX strategist at Merrill Lynch Japan Securities. Investors are keeping their eyes on a possible showdown of OPEC members at their meeting Wednesday in Vienna, the U.S. jobs data on Friday and the national referendum in Italy on Sunday, he said.
"It is true that [the dollar's] upside momentum is receding for now. But the dollar may head toward Y115-Y120 over the mid-term," eventually by next year or so, said Mr. Yamada.
The dollar had soared in a post-U.S. election rally, touching its eight-month high of Y113.90 last week, as investors grew more confident about U.S. economic growth and the prospect for higher interest rates under president-elect Donald Trump's proposals to boost fiscal stimulus. But the dollar has been struggling to go upside further this week.
It's too early to determine a turnaround in the uptrend of the dollar against the yen, said Takuya Kanda, senior researcherat Gaitame.Com Research Institute in a note. The dollar fell below its five-day moving average yesterday for the first time since the U.S. election day on Nov. 8.
But as the saying among the market players goes, investors can buy on the first dip in the process of a bull market, said Mr. Kanda, adding whether the dollar can regain the five-day moving average, now around 112.50, will be in focus later today.
In other currency trade, the euro was at Y118.64 from Y118.79 overnight.
Interbank Foreign Exchange Rates At 23:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 111.95-96 111.93-94 +0.01 112.24 111.63 -6.94
EUR/USD Euro 1.0598-601 1.0611-14 -0.12 1.0624 1.0589 -2.40
GBP/USD U.K. 1.2397-99 1.2417-19 -0.16 1.2420 1.2389 -15.87
USD/CHF Switzerland 1.0137-41 1.0129-33 +0.08 1.0147 1.0118 +1.19
USD/CAD Canada 1.3427-32 1.3410-15 +0.13 1.3436 1.3401 -2.96
AUD/USD Australia 0.7475-79 0.7481-85 -0.08 0.7498 0.7458 +2.61
NZD/USD New Zealand 0.7079-85 0.7070-76 +0.13 0.7087 0.7066 +3.64
EUR/JPY Japan 118.64-68 118.77-81 -0.11 119.00 118.56 -9.27
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
November 29, 2016 00:29 ET (05:29 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.