TOKYO, Oct 31: The dollar was rangebound on Wednesday as weak consumer confidence data and another drop in US share prices were offset by buying by trust banks and fears of intervention to weaken the yen, analysts said.

The US unit traded at 121.82-85 yen against 121.98 yen in New York and 121.80-82 yen in Tokyo late Tuesday.

Bayerische Hypo und Vereinsbank foreign exchange manager Yoshihiko Yotani said the dollar was being bought by Japanese trust banks despite a slump in US consumer confidence data.

The US Conference Board consumer confidence index fell to 85.5 points in October the lowest reading since February 1994 from 97.0 points in September.

Real demand, especially from trust banks, is still looking to buy the dollar, he said, adding that this was related to end of the month accounting requirements.

Today is the end of the month so there’s still demand for dollar and euro but the upside will be limited after today, he said.

US stocks slid for a second straight day Tuesday on the weak consumer data and concerns about further terror attacks in the United States.

The Dow Jones industrials tumbled 1.6 per cent to 1,667.33, and the Nasdaq composite declined 1.9 per cent to 1,667.41.

But one analyst at a French bank in Tokyo said importers were buying on the recent weakness in the dollar.

Last week everyone said the dollar should be stronger, said the analyst. And it has come off a bit so importers are in a rush to buy dollars at the moment.

The analyst added fears of intervention by the Bank of Japan were also convincing dealers the greenback would not fall far below 120 yen.

The BoJ is waiting to buy dollars on the downside because Japanese officials have been saying that the yen should be weaker, he said.

Japanese traders are now focused on US third-quarter gross domestic product figures due out Wednesday, the National Association of Purchasing Management index Thursday and labour market data Friday as well as the threat of another terrorist attack on the United States.

US officials said by next week for sure there will another act of terrorism, so people are really cautious about that, said the French bank analyst.

If there really is a terrorist attack, the dollar should be weaker, and more people will buy the euro, he said.

The euro bought $0.9052-55 compared with 0.9046 in New York and 0.9062-65 in Tokyo late Tuesday.

Against the yen, the euro was quoted at 110.36, against 110.34 in New York and 110.40 in Tokyo Tuesday afternoon.

In late Singapore trade, the dollar rose to 10,455 Indonesian rupiah from 10,345 on Tuesday, 34.5265 Taiwan dollars from 34.5145, 44.67 Thai baht from 44.665, and 51.965 Philippine pesos from 51.92.

It fell to 1,296.15 South Korean won from 1,298.40 and 1.8183 Singapore dollars from 1.8254.—AFP