Dollar Mixed as Dealers Await Fed Chief's Speech

Dealers said the dollar had proven resilient in recent days in the face of concerns about slowing US economic growth, supported by capital inflows as risk averse investors pull funds out of emerging markets.

The dollar rose to 116.63 yen in Tokyo morning trade from 116.55 in New York late Thursday.

The euro firmed to 1.2768 dollars from 1.2758 and to 148.90 yen from 148.68.

The US currency was little moved by a report showing that sales of new US homes fell by 4.3 percent in July, the largest decline since February.

The market had feared a larger decline, particularly after the sharp fall in existing home sales announced earlier in the week.

"The dollar was not swayed by the indicators as investors have been pulling money out of emerging markets to reduce (their exposure to) risks. The US currency was helped by this movement," said Kazuyuki Kato, treasury department manager at Mizuho Trust and Banking.

The yen was pressured slightly after domestic consumer inflation data came in softer than expected but selling was limited, Kato said.

Japan's core consumer prices Friday rose 0.2 percent in July from a year ago as deflationary pressure continued to ease, although the gain was smaller than the 0.5 percent rise expected by the market.

Local economists noted that the weaker-than-expected figure was largely due to changes to the way the consumer price index is calculated and expressed hope that the economy would continue on its path out of deflation.

All eyes were turning to Bernanke's speech on global economic integration later Friday at the Fed's Kansas City Economic Symposium in Wyoming for fresh leads.

Dealers said the market was keen for signals on the likelihood of further interest rate rises by the US central bank, which earlier this month paused in its tightening campaign after 17 straight interest rate rises.

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