TOKYO - The dollar was rangebound against the yen and euro in Asia on Friday after it dropped overnight following a recent rally on expectations that the US economy is gathering steam.
The dollar bought 83.53 yen in Tokyo morning trade, against 83.49 yen in New York late Thursday.
The dollar may fall to 83.00 yen as position adjustments are likely to kick in ahead of the weekend following the recent surge, said Masafumi Yamamoto, chief forex strategist at Barclays Capital in Tokyo.
"However, such a fall could offer a good opportunity for those who have missed out on buying the dollar amid the recent rise," he told Dow Jones Newswires, adding the market would likely confirm that the dollar remains supported.
The euro fetched US$1.3073, marginally down from US$1.3082, while staying almost flat at 109.28 yen.
The dollar slipped in New York Thursday with analysts citing the fuel-driven surge in producer prices for February as a worry.
But the Labor Department said Thursday new claims for US unemployment benefits fell by a more-than-expected 14,000 last week, adding to recent signs that the ailing job market is recovering.
Surveys of manufacturing in New York and the mid-Atlantic region showed activity continuing to rise.
National Australia Bank said in a note: "US data continues its positive theme, suggesting that in the short-term, both yields and the dollar are unlikely to fall far and may well turn modestly higher again."
The European debt crisis has seen a lull.
The International Monetary Fund on Thursday approved a second rescue loan for debt-riddled Greece, joining the European Union again in an attempt to save the country from bankruptcy.