Investing.com - The dollar was lower against the yen on Monday after comments by Japan’s economy minister indicated that the correction of the overly strong yen is almost completed.
During European morning trade, the dollar retreated from almost four-and-a-half year highs against the yen, with USD/JPY down 0.67% to 102.49.
The yen firmed up after Japan’s Economy Minister Akira Amari indicated that the yen’s correction from excessive strength was almost over and said that further yen weakness could have a negative impact on Japan’s economy.
Demand for the dollar continued to be underpinned after data on Friday showing that U.S. consumer sentiment rose to an almost six year high in May fuelled speculation that the Federal Reserve may scale back its monetary easing policies this year.
Elsewhere, the euro pulled away from six-week lows against the dollar, with EUR/USD rising 0.29% to 1.2870.
The single currency remained under pressure amid speculation that the European Central Bank is preparing to cut deposit rates into negative territory.
The dollar was lower against the pound and the Swiss franc, with GBP/USD climbing 0.22% to 1.5200 and USD/CHF falling 0.47% to 0.9677.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.47% to 0.9780, NZD/USD advancing 0.88% to 0.8137 and USD/CAD dipping 0.01% to 1.0273.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.31% to 84.07.
Trade volumes looked likely to remain light on Monday, with many European traders away for the Whit Monday holiday.
During European morning trade, the dollar retreated from almost four-and-a-half year highs against the yen, with USD/JPY down 0.67% to 102.49.
The yen firmed up after Japan’s Economy Minister Akira Amari indicated that the yen’s correction from excessive strength was almost over and said that further yen weakness could have a negative impact on Japan’s economy.
Demand for the dollar continued to be underpinned after data on Friday showing that U.S. consumer sentiment rose to an almost six year high in May fuelled speculation that the Federal Reserve may scale back its monetary easing policies this year.
Elsewhere, the euro pulled away from six-week lows against the dollar, with EUR/USD rising 0.29% to 1.2870.
The single currency remained under pressure amid speculation that the European Central Bank is preparing to cut deposit rates into negative territory.
The dollar was lower against the pound and the Swiss franc, with GBP/USD climbing 0.22% to 1.5200 and USD/CHF falling 0.47% to 0.9677.
The greenback was broadly weaker against its Australian, New Zealand and Canadian counterparts, with AUD/USD up 0.47% to 0.9780, NZD/USD advancing 0.88% to 0.8137 and USD/CAD dipping 0.01% to 1.0273.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.31% to 84.07.
Trade volumes looked likely to remain light on Monday, with many European traders away for the Whit Monday holiday.