TOKYO, Dec 25 (Reuters) The dollar sat tight on Monday near a two-month high scaled against the yen after a better-than-expected reading for consumer sentiment prompted buying in the U.S. currency late last week.
The University of Michigan said on Friday the final December reading of its consumer sentiment index came was 91.7, down from 92.1 in November but above the median forecast in a Reuters poll of 90.2.
Dealers said that trade was lacklustre and volume was thin as investors were reluctant to take fresh positions ahead of year-end holidays, and while financial markets in Asia, Europe and the United States were closed for Christmas holidays on Monday.
Given a paucity of market-moving economic data this session, investors will focus on an upcoming speech by Bank of Japan Governor Toshihiko Fukui for any clues about whether the central bank will bump up interest rates in January.
Fukui is slated to speak at a meeting of the Nippon Keidanren business lobby around 0500 GMT.
''The yen could get a boost if Fukui presents a hawkish outlook on monetary policy,'' said a trader at a Japanese trust bank.
Fukui said last week that Japanese consumption and consumer prices had softened, prompting market players to soften expectations that the BOJ will lift the overnight call rate to 0.5 percent from the current 0.25 percent in January.
In early Tokyo trade, the dollar was little changed at 118.80 yen in sight of a 2-month high of 118.97 yen struck on Friday.
The euro barely budged at $1.3130 The single European currency edged down to 155.95 yen from the around 156.05 yen marked in late U.S. trade on Friday. The euro hit an all-time high of 156.42 yen last week.
REUTERS MQA RN0658
The University of Michigan said on Friday the final December reading of its consumer sentiment index came was 91.7, down from 92.1 in November but above the median forecast in a Reuters poll of 90.2.
Dealers said that trade was lacklustre and volume was thin as investors were reluctant to take fresh positions ahead of year-end holidays, and while financial markets in Asia, Europe and the United States were closed for Christmas holidays on Monday.
Given a paucity of market-moving economic data this session, investors will focus on an upcoming speech by Bank of Japan Governor Toshihiko Fukui for any clues about whether the central bank will bump up interest rates in January.
Fukui is slated to speak at a meeting of the Nippon Keidanren business lobby around 0500 GMT.
''The yen could get a boost if Fukui presents a hawkish outlook on monetary policy,'' said a trader at a Japanese trust bank.
Fukui said last week that Japanese consumption and consumer prices had softened, prompting market players to soften expectations that the BOJ will lift the overnight call rate to 0.5 percent from the current 0.25 percent in January.
In early Tokyo trade, the dollar was little changed at 118.80 yen in sight of a 2-month high of 118.97 yen struck on Friday.
The euro barely budged at $1.3130 The single European currency edged down to 155.95 yen from the around 156.05 yen marked in late U.S. trade on Friday. The euro hit an all-time high of 156.42 yen last week.
REUTERS MQA RN0658
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