* Yen stable against dollar after Thursday rally
* Yellen testimony on Tuesday in focus
(Adds U.S. dollar moves, changes dateline from LONDON)
By Karen Brettell
NEW YORK, July 11 The Japanese yen was stable
against the U.S. dollar, after jumping on Thursday as Portugal's
largest bank sought to reassure investors about its financial
Banco Espirito Santo said on Thursday night that loan losses
to the troubled empire of its founding family would not put the
bank at risk of running short of capital.
That eased some concerns. The yen rose to five-month highs
against the euro and almost two-month highs against the dollar
on Thursday as investors worried about contagion and sought out
safe haven investments.
"It put concerns in the market about European growth and the
bank sector," said Mark McCormick, a macro strategist at Credit
Agricole in New York. "A lot of the concerns were
The yen was steady against the dollar at 101.33. It
rose 0.12 percent to 137.72 against the euro.
The dollar was also little changed against the euro
at $1.3593. The greenback rose 0.08 percent against a broad
basket of currencies to 80.197, according to the dollar index
The dollar has been largely rangebound against the major
currencies in recent months, struggling to gain strength as the
Federal Reserve maintains a steady, dovish tone and looks for
further growth before indicating an interest rate hike is on the
Minutes from the U.S. central bank's June meeting, released
on Wednesday, offered no new insight into Fed policy. The next
focus will be testimony by Fed Chair Janet Yellen to Congress on
With the Fed and the European Central Bank seen as unlikely
to announce any shifts in policy in the near term, investors
continue to seek out higher-yielding investments in alternative
"The theme is really short the dollar, short the euro and a
lot of carry, especially in emerging markets and higher-yielding
G10," said McCormick.
Philadelphia Fed President Charles Plosser, Chicago Fed
President Charles Evans and Atlanta Fed President Dennis
Lockhart will all speak on panels at an economic summit in
Jackson Hole, Wyoming, on Friday.
(Editing by Lisa Von Ahn)