Investing.com - The dollar was down against the yen on Wednesday and was trading near six-week lows against the euro as investors turned their attention to next week’s Federal Reserve policy setting meeting.
During European late morning trade, USD/JPY was down 0.37% to 102.46 after rising to a six-month high of 103.38 on Tuesday.
The dollar slipped amid fresh doubts over whether the Fed will taper its USD85 billion-a-month asset purchase program at its December 17-18 policy meeting, despite last week’s stronger-than-forecast U.S. nonfarm payrolls report for November.
The dollar shrugged off news that U.S. Congressional leaders reached an agreement on a two year budget deal on Tuesday. Congress will still need to reach a deal to raise the U.S. debt ceiling in February 2014 in order to avert a default.
EUR/USD edged up 0.05% to 1.3767, holding below the high of 1.3794 struck on Tuesday, the strongest level since October 29.
Demand for the shared currency continued to be underpinned as expectations for further monetary easing by the European Central Bank dimmed after the bank sounded less dovish than expected at last week’s policy meeting.
The euro received an additional boost after European Union finance ministers moved closer to an agreement on a European banking union on Tuesday, a measure which is seen as key in fending off a repeat of the region’s financial crisis.
The pound eased against the dollar, with GBP/USD down 0.32% to 1.6391 down from Tuesday’s highs of 1.6466, the strongest level in 27 months.
The dollar was little changed against the Swiss franc, with USD/CHF edging up 0.02% to 0.8874.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD sliding 0.43% to 0.9110, NZD/USD dropping 0.70% to 0.8251 and USD/CAD sliding 0.14% to 1.0586.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.03% to 79.95.
During European late morning trade, USD/JPY was down 0.37% to 102.46 after rising to a six-month high of 103.38 on Tuesday.
The dollar slipped amid fresh doubts over whether the Fed will taper its USD85 billion-a-month asset purchase program at its December 17-18 policy meeting, despite last week’s stronger-than-forecast U.S. nonfarm payrolls report for November.
The dollar shrugged off news that U.S. Congressional leaders reached an agreement on a two year budget deal on Tuesday. Congress will still need to reach a deal to raise the U.S. debt ceiling in February 2014 in order to avert a default.
EUR/USD edged up 0.05% to 1.3767, holding below the high of 1.3794 struck on Tuesday, the strongest level since October 29.
Demand for the shared currency continued to be underpinned as expectations for further monetary easing by the European Central Bank dimmed after the bank sounded less dovish than expected at last week’s policy meeting.
The euro received an additional boost after European Union finance ministers moved closer to an agreement on a European banking union on Tuesday, a measure which is seen as key in fending off a repeat of the region’s financial crisis.
The pound eased against the dollar, with GBP/USD down 0.32% to 1.6391 down from Tuesday’s highs of 1.6466, the strongest level in 27 months.
The dollar was little changed against the Swiss franc, with USD/CHF edging up 0.02% to 0.8874.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD sliding 0.43% to 0.9110, NZD/USD dropping 0.70% to 0.8251 and USD/CAD sliding 0.14% to 1.0586.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.03% to 79.95.