(Refiles to correct typo in fourth paragraph)
* Risk aversion eases as Bernanke edges closer to 2nd term
* Speculation of more BoJ easing weighs down yen
* Euro supported on strong demand for Greek bond issue
* Markets focus on Fed meeting, U.S. data later this week
(Updates prices, adds comments, details)
By Wanfeng Zhou
NEW YORK, Jan 25 (Reuters) - The dollar rose against the
yen on Monday as Federal Reserve Chairman Ben Bernanke edged
closer to winning support for a second term, which helped ease
risk aversion in the market.
Adding to pressure on the yen was speculation the Bank of
Japan may deliver more easing measures including buying
government bonds to support the economy.
Strong demand for a Greek sale of five-year bonds also
reduced investor concern over the euro zone's credit problems
and pushed the euro higher versus the dollar.
"(Bernanke) is still going to be confirmed. The odds
suggest that. In general, things have gotten a little better,"
said Meg Browne, senior currency strategist at Brown Brother
Harriman in New York. After the "risk aversion that we saw last
week, we're likely to enter a period of consolidation for a
little bit."
In midday trading, the dollar <JPY=> was up 0.3 percent at
90.15 yen.
The euro briefly rose above 128.00 yen <EURJPY=R>, moving
further away from a nine-month low hit on trading platform EBS
on Friday. It last traded at 127.50 yen, up 0.3 percent.
The dollar briefly pared gains versus the yen after data
showed sales of previously owned U.S. homes fell at the fastest
pace on record in December. See [].
"A little bit of risk aversion coming back on the books,"
said Greg Salvaggio, senior vice president of capital markets
at Tempus Consulting in Washington. "This morning's housing
data does not bode well for the overall economy."
The Bank of Japan began its two-day policy board meeting on
Monday. While the central bank is expected to keep interest
rates unchanged at 0.1 percent and hold off new initiatives,
the market will be watching for any hints of extra easing
measures in the future. []
"The market is paying some attention to the BOJ," BBH's
Browne said. "People are concerned about what they might do
given the state of the economy and the new finance minister."
FOMC, GDP
Against the dollar, the euro was up 0.1 percent on the day
at $1.4148 after touching a high <EUR=> of $1.4197, according
to Reuters data, as bank sources said demand for the Greek
issue had reached about 16 billion euros. []
Greece has been trying to convince markets it can manage
its ballooning debts. The syndicated sale of five-year bonds
was seen as an important test of investor demand.
Analysts said the pair was also supported as it held above
its 14-day moving average around $1.4130.
Major currency pairs traded in narrow ranges as traders
looked ahead to key events later this week, including the
Federal Reserve's two-day policy meeting and U.S.
fourth-quarter growth data.
"The U.S. dollar is a little bit lower in most of its
crosses and that's really a product of some profit-taking on
last week's moves and some positioning ahead of the event risk
of this week," said Omer Esiner, senior market analyst at
Travelex Global Business Payments in Washington.
Analysts said investors would follow developments in U.S.
President Barack Obama's crackdown on U.S. banks announced last
week as the market gauges its potential impact on the dollar.
The Australian dollar <AUD=> rose 0.3 percent versus the
U.S. dollar and New Zealand's currency <NZD=> gained 0.6
percent. Versus a currency basket, the U.S. dollar <.DXY> was
down 0.1 percent at 78.191.
(Editing by Diane Craft)
