Dollar rises within range

The dollar rose within recent ranges on Thursday as investors waited to see if a Group of Seven meeting next week would succeed in convincing China and other Asian countries to free their currencies soon. In the run up to the meeting in London, European policymakers have urged Asia to let their currencies rise and share the burden of dollar weakness. Major currencies see-sawed this week because of mixed signals from Chinese officials and comments from Japan's top financial diplomat confirming the group would stick to the language on currencies adopted a year ago.
"The dollar is showing some strength but it seems pretty range bound. We don't think anyone should expect anything from the G7. There will be noise on the sidelines but certainly the official statement will be a non-event," said Marvin Barth, currency strategist at Citibank.
At 1250 GMT the dollar was up a third of a percent at $1.3030, after briefly touching a 10-day low of $1.3124.
The dollar was up a quarter-percent against the yen at 103.29. The euro virtually steady at 134.62 yen.
In the near-term, traders were looking to US durable goods orders in December, due at 1330 GMT.
Japan's top financial diplomat Hiroshi Watanabe said on Thursday he believed the G7 stands by its currency statement adopted last February in Boca Raton, Florida.
He also said he has heard no calls from the G7 to change the statement.
His remarks followed comments from a G7 source who told Reuters on Wednesday the statement would be identical to that issued in Boca Raton.
The G7 said then that excessive volatility and "disorderly movements" in currency exchange rates were undesirable.
They also called for greater currency policy flexibility, in a thinly-veiled reference to Asian countries.
"A lot of the sting has been taken out of the G7. They don't want to change the wording and so the G7 could be a non-event," said Peter Fontaine, currency analyst at KBC in Brussels.
Market players are also getting nervous about Sunday's elections in Iraq, a cornerstone of US policy, and the escalation of violence there.