TOKYO: The dollar firmed slightly against the yen in Asian trade on Wednesday, lifted by promising US and European macroeconomic data, amid thin trade while investors stayed away for summer breaks.
The greenback edged up to 78.79 yen, from 78.73 yen in New York Tuesday afternoon.
Short-term investors are buying the dollar in the low range of 78 yen and selling in the higher range of 78 yen, Dai Sato, a senior trader at Mizuho Corporate Bank, told Dow Jones Newswires.
"Sentiment is bullish but they just don't have enough fresh factors to break the recent range," he said.
US economic indicators due later Wednesday, such as the consumer price index, industrial output and manufacturing sentiment data, could drive up US equities or bond yields and boost the dollar, analysts said.
Meanwhile, the euro was at $1.2324 and 97.10 yen, nearly flat from $1.2321 and 97.01 yen in New York.
"We need positive or negative developments in the European debt crisis to revitalise trade in the euro," Sato said.
The market will also watch for any impact from regular US Treasury coupon payments Wednesday possibly triggering the yen to rise, Masafumi Yamamoto chief forex strategist at Barclays in Tokyo told Dow Jones Newswires.
Bond-holding Japanese institutional investors may buy the yen to repatriate the coupons.
This trend has led to a popular market view that the dollar tends to weaken against the yen toward mid-August.
The dollar was mixed against other Asia-Pacific currencies. It fell to Tw$29.97 from Tw$30.01 on Tuesday, to 55.52 Indian rupees from 55.63 rupees, and to 1,129.99 South Korean won from 1,130.36 won.
But it firmed to 42.11 Philippine pesos from 41.97 pesos, to Sg$1.2483 from Sg$1.2459, to 9,500 Indonesian rupiah from from 9,485 rupiah, and to 31.48 Thai baht from 31.47 baht.
The Chinese yuan bought 12.38 yen against 12.33 yen.
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