LACKLUSTRE economic results from Japan, continuing uncertainty over a European single currency and a strengthening United States economy fuelled the greenback's momentum against most major currencies last week.
A business survey showed Japan's economy had not improved enough to benefit non-manufacturers and smaller companies. Leading manufacturers, however, were increasingly optimistic about their prospects.
Non-manufacturers and small firms in Japan were less optimistic, partly because they were unable to export to offset a slowdown at home and vulnerability to large changes in foreign exchange rates.
A statement by the Bank of Japan suggested it would not raise interest rates unless it saw a 'self sustainable' recovery. Evidence of recovery for small firms would be a determining factor.
A final revision of first-quarter gross domestic product at 5.9 per cent showed that the US economy grew at its fastest pace in almost a decade with little inflation.
The US dollar-yen rate will hover in a range of 112 to 117 until more economic data is released towards the end of the week.
