Yen, Stays Flat vs. Others As Traders Await Fed Move, Japan Data By Jennifer M. Barrett 03/21/2000 The Wall Street Journal (Copyright (c) 2000, Dow Jones & Company, Inc.) NEW YORK -- The dollar retreated against the yen but barely budged against major European currencies in thin trading ahead of the Federal Reserve's Open Market Committee meeting today. With Tokyo closed for the Vernal Equinox holiday and traders awaiting today's Fed meeting and the release of new Japanese trade data late yesterday, dealers said dollar-yen trading was particularly light. A flurry of dollar-buying helped the U.S. currency make a brief break out of its 106-yen range as trading kicked off in New York. But the dollar had barely exceeded the 107-yen mark when it was beaten back by strong chart resistance. After struggling to stay above the intraday low of 106.28 yen midway through the New York session, the dollar was at 106.45 yen late yesterday, down from 106.66 yen at the start of the session and 106.79 yen late Friday. Japan was slated to release its January business-activity index and February trade surplus just before midnight. Analysts expect an increase in both. The euro had nudged up to 97.29 cents from 97.20 cents late Friday. The pound was trading at $1.5690, down from $1.5735 late Friday in New York. Sterling has slipped nearly 3% against the dollar since the start of the year. The release today of the 2000-2001 United Kingdom budget is not expected to have much effect on the currency. While a projected interest-rate hike by the Fed should provide support in the longer term for the dollar, it is unlikely to have a noticeable effect on intraday spot trading unless it exceeds 0.25 of a percentage point. Analysts said a change of that proportion has already been priced into the market. If any currency is likely to register much reaction to a U.S. rate increase it is the Canadian dollar. The Canadian currency ha...
