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Dollar edges higher vs. yen, euro steady

Published 01/07/2014, 04:46 AM
Dollar pushes higher against yen in quiet trade
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Investing.com - The dollar edged higher against the yen on Tuesday, recouping some of the losses of the previous session after data showed that activity in the U.S. services sector slowed unexpectedly in December.

USD/JPY rose to session highs of 104.62 and was last up 0.11% to 104.33.

The dollar fell to almost two week lows against the yen on Monday after the Institute of Supply Management said its non-manufacturing purchasing manager's index declined to 53.0 in December from 53.9 in November. Analysts had expected the index to increase to 54.5.

The ISM said the new orders index contracted for the first time since July 2009, falling to 49.4.

Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.

The euro was slightly lower against the dollar, with EUR/USD dipping 0.04% to 1.3621 ahead of euro zone data on inflation.

Data released on Tuesday showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000. The country’s unemployment rate remained steady at 6.9%.

A separate report showed that German retail sales rose 1.5% in November, more than double expectations for an increase of 0.6%.

The dollar pushed higher against the pound and the Swiss franc, with GBP/USD slipping 0.11% to 1.6387 and USD/CHF up 0.30% to 0.9067.

The greenback was stronger against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.55% to 0.8917, NZD/USD losing 0.15% to trade at 0.8278 and USD/CAD climbing 0.28% to 1.0684.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, ticked up 0.10% to 80.88.




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