TOKYO (AFX-ASIA) - The dollar was rangebound in cautious, midafternoon trade ahead of the US FOMC meeting later today, dealers said. Overall activity was very slow also due to the the traditional "Obon" holiday week, when most non-financial firms are closed, they said. "Market participants are now eager to know if there will be any change to the monetary policy bias at today's FOMC meeting," Takashi Fujieda, foreign exchange assistant manager at Mizuho Asset Trust Bank said. "If there is a change in the policy bias and if no more negative accounting news emerges until the end of the Aug 14 deadline (of the ongoing probe by the US SEC into accounting practices), the dollar is likely to move stably in the 118-120 yen trading range." Fujieda, however, warned of the sustained downward pressure on the dollar due to possible deterioration of supply and demand conditions for the US currency. "It seems the latest round of active capital repatriiation by US funds has peaked, which may reopen dollar selling," he said. The euro was confined to relatively narrow trading ranges, with investors sidelined ahead of today's FOMC meeting, dealers said. "If the dollar were to undergo a renewed downtrend because of concerns over the prospects of the US economy after the FOMC meeting, it has more room to lose against the euro than against the yen," Fujieda said. "Any economic slowdown in the US will have a bigger impact on Japan than Europe." Tokyo 2.00 pm Tokyo 11.00 am New York 3.35 pm Dollar
yen 118.86 up from 118.82 118.94 sfr 1.4943 down from 1.4954 1.4937 Euro
usd 0.9780 up from 0.9776 0.9784 yen 116.27 up from 116,15 116.41 stg 0.6388 down from 0.6392 0.6387 sfr 1.4616 down from 1.4619 1.4622 Sterling
usd 1.5311 up from 1.5294 1.5315 yen 182.01 up from 181.72 182.20 sfr 2.2879 up from 2.2870 2.2884 Australian dollar
usd 0.5399 down from 0.5403 0.5394 stg 0.3526 unchanged 0.3526 0.3520 yen 64.18 down from 64.19 64.18 bur/tr