Investing.com - The dollar was higher against the yen on Monday as news that Tokyo won the bid to host the 2020 Olympics and upbeat data out of China bolstered market sentiment.
During European late morning trade, the dollar gained ground against the yen, with USD/JPY rising 0.37% to 99.48, after rising as high as 100.11 earlier.
Demand for the safe haven yen was hit as Japan’s Nikkei rallied amid expectations that spending and construction activity in preparation for the 2020 Olympic Games will further help boost Japan's economic recovery in the coming years.
Risk appetite was also helped after upbeat trade data out of China added to indications that the world’s second largest economy is recovering from a slowdown.
Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.
Meanwhile, data released on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.
In Japan, revised data showed that the economy expanded by 0.9% in the second quarter, bringing the annualized rate of growth to 3.8%, compared with a preliminary reading of 2.6%. The initial estimate for quarter on quarter growth was 0.6%.
The dollar’s gains were held in check after the latest U.S. nonfarm payrolls report came in below expectations on Friday, dampening expectations that the Federal Reserve could start to pull back stimulus measures later this month.
Elsewhere, the euro edged higher against the dollar, with EUR/USD inching up 0.08% to 1.3191.
The euro found support after the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.
The pound was also higher against the dollar, with GBP/USD advancing 0.32% to 1.5680.
The dollar slipped lower against the Swiss franc, with USD/CHF dipping 0.07% to 0.9367.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.15% to 0.9203, NZD/USD edging up 0.03% to 0.8003 and USD/CAD shedding 0.29% to trade at 1.0381.
The Australian dollar remained supported by the Chinese data in the first day of trade after federal elections in Australia.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% to 82.12.
During European late morning trade, the dollar gained ground against the yen, with USD/JPY rising 0.37% to 99.48, after rising as high as 100.11 earlier.
Demand for the safe haven yen was hit as Japan’s Nikkei rallied amid expectations that spending and construction activity in preparation for the 2020 Olympic Games will further help boost Japan's economic recovery in the coming years.
Risk appetite was also helped after upbeat trade data out of China added to indications that the world’s second largest economy is recovering from a slowdown.
Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.
Meanwhile, data released on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.
In Japan, revised data showed that the economy expanded by 0.9% in the second quarter, bringing the annualized rate of growth to 3.8%, compared with a preliminary reading of 2.6%. The initial estimate for quarter on quarter growth was 0.6%.
The dollar’s gains were held in check after the latest U.S. nonfarm payrolls report came in below expectations on Friday, dampening expectations that the Federal Reserve could start to pull back stimulus measures later this month.
Elsewhere, the euro edged higher against the dollar, with EUR/USD inching up 0.08% to 1.3191.
The euro found support after the Sentix index of euro zone investor confidence rose to a six month high of 6.5 in September, up from minus 4.9 last month. Analysts had forecast a reading of minus 2.8.
The pound was also higher against the dollar, with GBP/USD advancing 0.32% to 1.5680.
The dollar slipped lower against the Swiss franc, with USD/CHF dipping 0.07% to 0.9367.
Elsewhere, the greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.15% to 0.9203, NZD/USD edging up 0.03% to 0.8003 and USD/CAD shedding 0.29% to trade at 1.0381.
The Australian dollar remained supported by the Chinese data in the first day of trade after federal elections in Australia.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% to 82.12.