25.06.201401:12:32UTC+00Dollar bends for closest range in 2 years

The US dollar was slated for the tightest quarterly trading range in nearly two years against the Japanese yen as stimulus from central banks in the world’s largest economies drives volatility to record lows.

A measure of the dollar was around 0.2% from the lowest in a month versus a basket of counterparts ahead of a report today forecast to show the US economy tumbled more than previously predicted, underpinning bets the Federal Reserve would retain borrowing costs close to zero. The euro was prepared for a quarterly dive following the European Central Bank fixed one of its main interest rates negative this month.

“Traders tend to feel that a lot is out of their control with central banks being active. That’s one of the main reasons why we’ve seen these tight ranges being maintained,” said Stan Shamu, Markets Strategist at IG Ltd.

The dollar sank 0.1% to ¥101.89 as of 11:57 a.m. in Tokyo, set for a 1.3% plunge this quarter. The euro was $1.3603, previously $1.3606, dropping 1.2% since March 31, slated for its first quarterly decline since the three months through March 2013. It missed 0.1% to ¥138.60.

The ¥3.31 difference between the dollar’s high of ¥104.13 and low of ¥100.82 this quarter is the smallest since three months closed September 2012. The gap of 4.9 US cents between the euro’s firmest level of $1.3993 and weakest of $1.3503 over the same period ties the least since the 2nd quarter of 2007.