The dollar was flat against the yen in rangebound Asian trade Tuesday, with investors in wait-and-see mode before coming economic data and events this week. Meanwhile, the Australian dollar advanced after the Australian central bank's latest meeting minutes damped hopes for an early rate reduction. The U.S. currency USDJPY, +0.20% was at ¥109.22, compared with ¥109.04 late Monday in New York. The euro EURUSD, +0.0883% was changing hands at $1.1313 from $1.1320 late Monday. The WSJ Dollar Index BUXX, -0.23% a measure of the dollar against a basket of major currencies, was down 0.18% at 86.71. Market sentiment has recently improved, with the oil-price rally and gains in U.S. stocks increasing investors' risk appetite. In Tokyo, the Nikkei Stock Average NIK, +1.13% rose 0.6% midday. However, the dollar is struggling to maintain upside momentum because of heavy selling on the currency's recovery as it moves closer to ¥110, said Yuzo Sakai, manager of foreign-exchange business promotion at Tokyo Forex & Ueda Harlow. Investors were sitting on the sidelines ahead of U.S. economic indicators such as housing starts later Tuesday, Japan's January-March gross domestic product data Wednesday and the Group of Seven meeting of finance officials over the weekend, he aid. But "it seems investors are not willing to buy the dollar at its ¥109 level," said Sakai. "It looks (the dollar at) ¥110 is so near and yet so far." The Australian dollar AUDJPY, +1.12% advanced to $0.7374 and AUDJPY, +1.12% ¥80.23 midday, respectively from $0.7288 and ¥79.46. Australia's central bank Tuesday indicated that its policy-setting board's May 3 decision to cut interest rates had been closely contested, as officials considered delaying the action. This pointed to an increased likelihood that the Reserve Bank of Australia could hold off on another rate cut until August, when policy makers will have more inflation data to consider. The U.K. pound GBPUSD, +0.6943% rose to $1.4480 midday from $1.4401 late Monday. The euro EURJPY, +0.28% was at ¥123.56 from ¥123.43.
