Investing.com - The yen moved higher against the dollar and the euro on Tuesday as weak trade data out of China rekindled fears over a slowdown in the world’s second largest economy, spurring increased safe haven demand.
USD/JPY fell to one-week lows of 112.75 and was last at 112.91, off 0.48% for the day.
Official data showed that China’s exports tumbled 25.4% from a year earlier to $126.1 billion in February. Economists had expected a decline of 12.5%.
Imports fell 13.8% year-on-year, slowing from January’s 18.8% tumble.
The steep fall in exports was due in part to the Chinese New Year, which fell earlier in February this year, but still highlighted concerns over slowing global demand.
The euro was also weaker against the yen, with EUR/JPY sliding 0.3% to 124.54.
In Japan, data on Tuesday showed that Japan’s economy contracted 1.1% in the last quarter of 2015, less than the initial estimate of a 1.4% contraction.
The euro remained under pressure amid heightened expectations for more easing from the European Central Bank at the conclusion of Thursday’s policy meeting.
EUR/USD edged up 0.14% to 1.1029.
The dollar slid against the euro and the yen late Monday following dovish comments by a Federal Reserve official.
Fed Governor Lael Brainard dampened expectations for a short term rate hike, saying that while global financial markets have steadied in recent weeks, slowing growth in China and weak global demand still pose risks to the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.09% to 97.03.