Investing.com - The dollar rose to two month highs against the yen on Tuesday amid expectations that the Federal Reserve will soon start to taper stimulus, while the euro slipped lower after weak German inflation data.
During European morning trade, USD/JPY rose 0.49% to 99.64, re-approaching the 100 level last hit on September 11.
Demand for the dollar continued to be underpinned after data last week showing that the U.S. economy added far more jobs that expected in October spurred speculation that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.
The euro moved lower against the dollar, with EUR/USD down 0.21% to 1.3376, still holding above the seven week low of 1.3294 hit on Thursday.
Data released on Tuesday showed that the annual rate of inflation in Germany, the euro zone’s largest economy, slowed to 1.2% in October, the lowest level in more than three years, from 1.4% in September.
German wholesale prices were 2.7% lower on a year-over-year basis, and fell 1.0% from a month earlier.
The data added to concerns over weakening demand in the euro area, after the European Central Bank surprised investors with a rate cut last Thursday.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.27% to 1.5943 and USD/CHF rising 0.18% to 0.9210.
The greenback was also higher against the Australian dollar, with AUD/USD falling 0.30% to 0.9330.
Australia’s dollar came under pressure after the National Australia Bank said its index of business confidence pulled back from three-and-a-half year highs in October amid concerns over the tepid outlook for domestic demand.
The greenback pushed higher against the New Zealand and Canadian dollars, with NZD/USD losing 0.24% to trade at 0.8233 and USD/CAD climbing 0.22% to 1.0497.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28% to 81.38.
During European morning trade, USD/JPY rose 0.49% to 99.64, re-approaching the 100 level last hit on September 11.
Demand for the dollar continued to be underpinned after data last week showing that the U.S. economy added far more jobs that expected in October spurred speculation that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.
The euro moved lower against the dollar, with EUR/USD down 0.21% to 1.3376, still holding above the seven week low of 1.3294 hit on Thursday.
Data released on Tuesday showed that the annual rate of inflation in Germany, the euro zone’s largest economy, slowed to 1.2% in October, the lowest level in more than three years, from 1.4% in September.
German wholesale prices were 2.7% lower on a year-over-year basis, and fell 1.0% from a month earlier.
The data added to concerns over weakening demand in the euro area, after the European Central Bank surprised investors with a rate cut last Thursday.
Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.27% to 1.5943 and USD/CHF rising 0.18% to 0.9210.
The greenback was also higher against the Australian dollar, with AUD/USD falling 0.30% to 0.9330.
Australia’s dollar came under pressure after the National Australia Bank said its index of business confidence pulled back from three-and-a-half year highs in October amid concerns over the tepid outlook for domestic demand.
The greenback pushed higher against the New Zealand and Canadian dollars, with NZD/USD losing 0.24% to trade at 0.8233 and USD/CAD climbing 0.22% to 1.0497.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28% to 81.38.