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Dollar firmer against

yen, steady vs mark

TOKYO: The dollar was firmer against the yen and steady against the mark in late Tokyo trade on Friday, but virtually no action was detected as imminent Easter holidays and forthcoming U.S. employment data took their toll.

"The dollar seems to have frozen up this afternoon, what with the holidays and indicators later on. We've heard almost nothing from our clients," one U.S. bank dealer said.

She said the dollar's range of movement had grown gradually tighter throughout the day, until by late Tokyo time the hapless greenback appeared to be stuck between buying interest at around 107.20 yen and a topside growing inexplicably heavy at around 107.30 yen.

"Given the overall market mood, it would not have been surprising for the dollar to have made it up to 107.50 yen," she added. Friday morning's high was 107.44 yen.

Other dealers said there appeared to be some light offers at around 107.40 yen, with heavier exporter offers at around 107.70 yen.

Bids were seen from importers and institutional investors, including life insurers, at the higher end of the 106 yen level.

The dollar had been firmly supported in morning Tokyo by fresh dollar buying by institutional investors, dealers said.

"The dollar's undertone was firmly supported by investors' renewed interest in dollar bonds," said Yasuhiko Matsunaga, senior forex manager at Industrial Bank of Japan.

But movements had been sluggish at best even then, dwindling to the merest twitches up and down by late Tokyo as operators absented themselves in increasing numbers.

Attention was riveted on the March U.S. non-farm payrolls numbers and unemployment rate, due to be issued at 1330 GMT on Friday, although there was no concrete sense in the market of where the dollar could head afterwards.

A Reuters poll of economists forecast an average increase of 60,000 jobs and a rise in the unemployment rate of 0.1 percent, to 5.6 percent. February's data saw a whopping increase of 705,000 jobs.

"It's hard to predict. If the numbers are low, will the dollar be sold? Or will U.S. bonds rise and the dollar be bought on that?" one European bank dealer said.

But other dealers said low numbers would not have much of an impact, as this would be merely a natural correction from February's too-high figures.

Singapore markets were closed for a holiday.-Reuter