* Dollar stays firm vs yen after rising 1 pct previous day
* Some focus on potential for Japan importers' dlr buying
TOKYO Aug 23 The dollar edged higher versus the
yen on Friday, with some traders speculating that the dollar
could attract demand from Japanese importers.
Market expectations that the U.S. Federal Reserve could
start scaling back its massive stimulus programme as early as
September also helped support the U.S. currency.
The dollar rose 0.3 percent to 98.96 yen. The dollar
gained 1 percent versus the Japanese currency on Thursday,
supported by a rise in U.S. Treasury yields.
The 10-year Treasury yield last stood near 2.903 percent
, having set a two-year high of 2.936 percent on
Thursday. Such a rise in yields can increase the attractiveness
of dollar-denominated assets.
Treasury yields had pushed higher after minutes of the
Federal Reserve's July meeting on Wednesday did little to change
market expectations that the Fed could start tapering its
bond-buying programme as early as next month.
Traders said Japanese importers may buy dollars against the
yen and help keep the yen on a back foot in the near term.
"A lot of the people are speculating that ... there is going
to be demand. But most of the Japanese corporates were off last
week. I expect it's a non-event," a trader at a Japanese bank
The euro eased 0.1 percent to $1.3345. Against
the yen, the euro edged up 0.1 percent to about 132.04 yen
after having climbed more than 1 percent against the
Japanese currency on Thursday.