Dollar, euro rangebound ahead of eurozone events

TOKYO: The dollar and the euro stayed within a tight range Tuesday, as investors waited for further developments in efforts to restore eurozone finances ahead of meetings of major central banks.

The dollar stood at 78.04 yen, nearly flat from 77.98 yen in New York Monday afternoon.

The euro was at $1.2892 and 100.61 yen, little changed from $1.2887 and 100.51 yen in New York.

The markets were waiting for headlines from Greece and Spain, as well as the results of a Moody's review that could see Spain downgraded to junk status, Kengo Suzuki, forex strategist at Mizuho Securities, told Dow Jones Newswires.

After Spain unveiled an austerity budget for 2013, some EU officials expressed their resolve to help the country if it seeks a bailout, as eurozone finance ministers gather for a meeting on October 8.

Rising hopes for a Spanish bailout are also expected to be discussed at a European Union summit on October 18-19.

The market will also be watching a policy decision later Tuesday by the Reserve Bank of Australia (RBA).

Some analysts say the market has factored in a rate cut, while others expected the bank to keep the rate steady.