Dollar static above ¥110.50 in Tokyo ahead of key U.S. data

The dollar was static modestly above ¥110.50 in Tokyo trading on Thursday as traders retreated to the sidelines ahead of more key U.S. economic data releases later this week.

At 5 p.m., the dollar stood at ¥110.63-64, slightly down from ¥110.79-79 at the same time on Wednesday. The euro was at $1.1841-1841, up from $1.1833-1833, and at ¥131.01-01, down from ¥131.10-10.

The greenback eased to levels close to ¥110.50 in the morning, dragged down by declines in Tokyo stock prices, as well as a smaller-than-expected Australian trade surplus, traders said.

But the U.S. currency’s downside was limited before the U.S. Institute for Supply Management releases its nonmanufacturing business index for July later on Thursday and the U.S. Labor Department publishes a July employment report on Friday.

“There appeared to be no active trading, with traders in the mood to wait and see a series of U.S. economic indicators,” an official at a foreign exchange brokerage house said.

On Wednesday, Automatic Data Processing Inc. said U.S. private employers added a solid 178,000 jobs in July, propelling the dollar as high as ¥110.98.

Later in overseas trading overnight, the U.S. unit temporarily fell back below ¥110.50 amid growing speculation of an early start to monetary tightening in Europe, and a pause in such a move in the United States.

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