TOKYO (Kyodo) -- The U.S. dollar fluctuated narrowly in the lower 124 yen range on Wednesday in Tokyo as market participants sat on the fence before the release later in the day of the minutes of the U.S. Federal Reserve's July policy meeting and U.S. inflation data for last month. At 5 p.m., the dollar fetched 124.25-26 yen compared with 124.35-45 yen in New York and 124.24-25 yen in Tokyo at 5 p.m. Tuesday. It moved between 124.22 yen and 124.43 yen during the day, changing hands most frequently at 124.33 yen. The euro was quoted at $1.1057-1059 and 137.39-43 yen against $1.1016-1026 and 137.15-25 yen in New York and $1.1087-1089 and 137.75-79 yen in Tokyo late Tuesday afternoon. The dollar was stuck in a tight range throughout Tokyo time "amid a wait-and-see mood ahead of the FOMC minutes," said Shinya Harui, foreign exchange analyst at Nomura Securities Co., referring to the Federal Open Market Committee's July 28-29 meeting minutes. But the dollar was on a solid footing, underpinned by stronger-than-expected U.S. housing starts data for July released overnight in New York, dealers said. Minori Uchida, head of Tokyo global market research at the Bank of Tokyo-Mitsubishi UFJ, said market participants took the housing starts data, which followed other positive housing-related figures a day earlier, as a factor supporting an expected U.S. interest rate hike within this year. "Despite a drop in (Tokyo) stocks, the dollar remained at the 124 yen level, helped by expectations of a U.S. rate hike," Uchida said. The U.S. consumer price index for July due out later Wednesday is also drawing attention, he added. The euro gained some footing versus both the dollar and the yen in the afternoon due to "position adjustments," said Nomura's Harui.

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