Investing.com - The dollar was mixed against the other major currencies on Friday, as investors turned their attention to ongoing U.S. budget negociations, while the lack of clarity on the future of the Federal Reserve's stimulus program continued to weigh on the greenback.
During European morning trade, the dollar was lower against the yen, with USD/JPY shedding 0.36% to 98.65.
The yen gained ground against the dollar after Japanese Finance Minister Taro Aso said that he is not thinking of lowering the corporate tax rate.
The comments came following reports on Thursday that the Japanese government plans to say it will "urgently consider" cutting the corporate tax rate when it compiles a stimulus package next week.
Also Friday, official data showed that Japan's core consumer price inflation, excluding fresh food, rose to an annualized rate of 0.8% in August, from 0.7% the previous month. Analysts had expected core CPI to remain unchanged last month.
Meanwhile, U.S. budget concerns persisted after Republican leaders in the U.S. House of Representatives refused on Thursday to give in to President Barack Obama's demand for straightforward bills to run the government beyond September 30 and to increase borrowing authority to avoid a default.
Congress must reach an agreement on the budged debate before October 1 to prevent a government shutdown that could involve federal employees facing unpaid temporary leave and a delay in the payment of military personnel.
Separately, the greenback remained under pressure amid ongoing uncertainty over whether the Fed will soon begin taperints bond-buying program. Three top Fed officials said on Thursday the central bank had confused markets over its policy outlook.
Elsewhere, the euro edged higher against the dollar, with EUR/USD adding 0.11% to 1.3503.
Sentiment on the euro remained fragile after European Central Bank Executive Board member Benoit Coeure on Thursday said the bank has room to cut interest rates further if needed but does not target a specific level for money market rates.
The dollar was lower against the pound and the Swiss franc, with GBP/USD gaining 0.20% to 1.6071 and USD/CHF slipping 0.21% to trade at 0.9084.
Sterling strengthened after Bank of England Governor Mark Carney said to the Yorkshire Post that hhe sees no need for more bond-buying given the signs of recovery in the U.K. economy. Carney added that the BoE would consider the case for more economic stimulus should the recovery falter.
Earlier Friday, industry data showed that U.K. house price inflation rose 0.9% this month, exceeding expectations for a 0.5% gain, after an upwardly revised 0.7% rise in August.
In Switzerland, data showed that the KOF economic barometer rose to 1.53 in September, from an upwardly revised reading of 1.37 the previous month, compared to expectations for a rise to 1.47.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD retreating 0.37% to 0.9325, NZD/USD easing 0.09% to 0.8284 and USD/CAD edging up 0.17% to 1.0328.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% to 80.54.
Later in the day, the U.S. was to release revised data on consumer sentiment and inflation expectations from the University of Michigan, as well as data on personal income and expenditure.
During European morning trade, the dollar was lower against the yen, with USD/JPY shedding 0.36% to 98.65.
The yen gained ground against the dollar after Japanese Finance Minister Taro Aso said that he is not thinking of lowering the corporate tax rate.
The comments came following reports on Thursday that the Japanese government plans to say it will "urgently consider" cutting the corporate tax rate when it compiles a stimulus package next week.
Also Friday, official data showed that Japan's core consumer price inflation, excluding fresh food, rose to an annualized rate of 0.8% in August, from 0.7% the previous month. Analysts had expected core CPI to remain unchanged last month.
Meanwhile, U.S. budget concerns persisted after Republican leaders in the U.S. House of Representatives refused on Thursday to give in to President Barack Obama's demand for straightforward bills to run the government beyond September 30 and to increase borrowing authority to avoid a default.
Congress must reach an agreement on the budged debate before October 1 to prevent a government shutdown that could involve federal employees facing unpaid temporary leave and a delay in the payment of military personnel.
Separately, the greenback remained under pressure amid ongoing uncertainty over whether the Fed will soon begin taperints bond-buying program. Three top Fed officials said on Thursday the central bank had confused markets over its policy outlook.
Elsewhere, the euro edged higher against the dollar, with EUR/USD adding 0.11% to 1.3503.
Sentiment on the euro remained fragile after European Central Bank Executive Board member Benoit Coeure on Thursday said the bank has room to cut interest rates further if needed but does not target a specific level for money market rates.
The dollar was lower against the pound and the Swiss franc, with GBP/USD gaining 0.20% to 1.6071 and USD/CHF slipping 0.21% to trade at 0.9084.
Sterling strengthened after Bank of England Governor Mark Carney said to the Yorkshire Post that hhe sees no need for more bond-buying given the signs of recovery in the U.K. economy. Carney added that the BoE would consider the case for more economic stimulus should the recovery falter.
Earlier Friday, industry data showed that U.K. house price inflation rose 0.9% this month, exceeding expectations for a 0.5% gain, after an upwardly revised 0.7% rise in August.
In Switzerland, data showed that the KOF economic barometer rose to 1.53 in September, from an upwardly revised reading of 1.37 the previous month, compared to expectations for a rise to 1.47.
Elsewhere, the greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD retreating 0.37% to 0.9325, NZD/USD easing 0.09% to 0.8284 and USD/CAD edging up 0.17% to 1.0328.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12% to 80.54.
Later in the day, the U.S. was to release revised data on consumer sentiment and inflation expectations from the University of Michigan, as well as data on personal income and expenditure.