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Dollar pushes higher vs. yen, gains limited

Published 10/21/2013, 05:06 AM
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Investing.com - The dollar pushed higher against the yen and the euro on Monday, but gains were held in check by expectations that the Federal Reserve will hold off on plans to taper stimulus measures following the U.S. government shutdown.

During European morning trade, the dollar gained ground against the yen, with USD/JPY rising 0.31% to 98.08.

The yen slid after data released on Monday showed that Japan posted a trade deficit of JPY932.1 billion in September, as export growth slowed. It was the 15th consecutive monthly deficit, the longest run on record.

The dollar received an additional boost after Bank of Japan Governor Haruhiko Kuroda reiterated Monday that the bank would stick to its stimulus program and added that the economy was on track to reach the bank's 2% inflation target.

The dollar remained under pressure as concerns over the impact of the 16-day shutdown on the U.S. economic recovery fuelled expectations that the Fed would delay plans for rolling back its asset purchase program until at least the beginning of next year.

Investors were awaiting U.S. data releases later in the week after the shutdown delayed the release of some key economic reports. The September nonfarm payrolls report, which had been originally scheduled for release on October 4, was due on Tuesday.

The euro slipped lower against the dollar, with EUR/USD losing 0.10% to trade at 1.3670.

Elsewhere, the dollar was almost unchanged against the pound, with GBP/USD edging up 0.02% to 1.6170.

The dollar pushed higher against the Swiss franc, with USD/CHF up 0.19% to 0.9036.

The greenback was mixed to higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.05% to 0.9671, NZD/USD down 0.45% to 0.8468 and USD/CAD inching up 0.05% to 1.0296.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.09% to 79.77.

The U.S. was to release private sector data on existing home sales later Monday.





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