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Dollar higher against yen, euro slips lower

Published 02/18/2013, 06:28 AM
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Investing.com - The dollar moved higher against the yen on Monday after the Group of 20 nations avoided singling Japan out for criticism over policies that have led to a recent sharp decline in the yen, while the euro remained under pressure amid concerns over the economic outlook for the euro zone.

During European late morning trade, the dollar rose against the yen, re-approaching two-and-a-half year highs, with USD/JPY up 0.55% to 93.99.

The G20 pledged to ensure that monetary policy is focused on price stability and growth, rather than on weakening currencies, following a weekend summit meeting in Moscow.

Following the G20 summit investor attention returned to the upcoming announcement of the next governor of the Bank of Japan after Governor Masaaki Shirakawa said earlier this month that he plans to step down on March 19, three weeks earlier than expected.

The dollar was trading close to three-week highs against the euro, with EUR/USD sliding 0.13% to 1.3343.

Data last week showing that the recession in the euro zone deepened in the fourth quarter fuelled speculation over a possible rate cut by the European Central Bank.

Investors also remained wary ahead of the upcoming Italian general elections later this month.

The greenback was trading close to seven-month highs against the pound, with GBP/USD down 0.29% to 1.5470.

Sentiment on the pound was hit by growing concerns over the outlook for the economy after data on Friday showed that U.K. retail sales posted an unexpected decline last month.

Elsewhere, the greenback edged higher against the Swiss franc, with USD/CHF climbing 0.21% to 0.9234.

The greenback was trading in a narrow range against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.01% to 1.0066, AUD/USD slipping 0.12% to 1.0299 and NZD/USD edging up 0.01% to 0.8446.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.22% to 80.73.

Trade volumes were expected to remain light on Monday, with U.S. markets remaining closed for the President’s Day holiday.



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