Investing.com - The dollar retreated against the yen on Tuesday, but broad based yen selling was expected to resume amid the effects of the Bank of Japan’s massive new monetary stimulus program.
During European afternoon trade, the dollar eased back from its highest level since May 2009 against the yen, with USD/JPY down 0.56% to 98.81.
The dollar eased as investors locked in profits, but expectations mounted that the dollar would soon break the 100.00 mark.
Last week the BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases in a bid to achieve its 2% inflation target.
The dollar was lower against the euro, with EUR/USD rising 0.43% to 1.3062.
Earlier Tuesday, data showed that German exports and imports fell unexpectedly in February, down 1.5% and 3.8% respectively, adding to concerns over the outlook for the euro zone’s largest economy.
The dollar was lower against the pound, with GBP/USD climbing 0.44% to 1.5318.
Sterling found support after upbeat U.K. factory data eased concerns over the threat of a triple dip recession.
U.K. manufacturing production rose by 0.8% in February, beating expectations for a 0.3% increase. Industrial production rose 1% compared to expectations for a 0.3% increase.
A separate report showed that the U.K. trade deficit widened to GBP 9.4 billion in February from GBP8.2 billion in January, compared to expectations for a deficit of GBP8.6 billion.
The dollar slid lower against the Swiss franc, with USD/CHF losing 0.11% to trade at 0.9342.
The greenback extended losses against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.32% to trade at 1.0136, AUD/USD advancing 0.71% to 1.0485 and NZD/USD rising 0.57% to 0.8507.
The commodity linked currencies found support after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%.
The data eased concerns over further policy tightening by the Chinese government.
In Canada, data showed that housing starts rose to an annualized rate of 184,000 in March, up from 183,207 in February.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% to 82.54.
Trade looked likely to remain subdued on Tuesday, with no major economic data releases from the U.S. on the calendar.
During European afternoon trade, the dollar eased back from its highest level since May 2009 against the yen, with USD/JPY down 0.56% to 98.81.
The dollar eased as investors locked in profits, but expectations mounted that the dollar would soon break the 100.00 mark.
Last week the BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases in a bid to achieve its 2% inflation target.
The dollar was lower against the euro, with EUR/USD rising 0.43% to 1.3062.
Earlier Tuesday, data showed that German exports and imports fell unexpectedly in February, down 1.5% and 3.8% respectively, adding to concerns over the outlook for the euro zone’s largest economy.
The dollar was lower against the pound, with GBP/USD climbing 0.44% to 1.5318.
Sterling found support after upbeat U.K. factory data eased concerns over the threat of a triple dip recession.
U.K. manufacturing production rose by 0.8% in February, beating expectations for a 0.3% increase. Industrial production rose 1% compared to expectations for a 0.3% increase.
A separate report showed that the U.K. trade deficit widened to GBP 9.4 billion in February from GBP8.2 billion in January, compared to expectations for a deficit of GBP8.6 billion.
The dollar slid lower against the Swiss franc, with USD/CHF losing 0.11% to trade at 0.9342.
The greenback extended losses against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.32% to trade at 1.0136, AUD/USD advancing 0.71% to 1.0485 and NZD/USD rising 0.57% to 0.8507.
The commodity linked currencies found support after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%.
The data eased concerns over further policy tightening by the Chinese government.
In Canada, data showed that housing starts rose to an annualized rate of 184,000 in March, up from 183,207 in February.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% to 82.54.
Trade looked likely to remain subdued on Tuesday, with no major economic data releases from the U.S. on the calendar.