Investing.com - The dollar edged lower against the yen on Wednesday but remained supported close to two month highs on the view that the Federal Reserve may start tapering stimulus measures as soon as next month.
During European morning trade, USD/JPY dipped 0.10% to 99.52, holding just below the two month high of 99.79 struck on Tuesday.
Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.
Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.
The euro was fractionally lower against the dollar, with EUR/USD edging down 0.05% to 1.3428.
The euro remained supported, holding onto gains made in the wake of last week’s broad based selloff when the European Central Bank unexpectedly cut rates to a record low 0.25%.
Elsewhere, the dollar little changed against the pound and the Swiss franc, with GBP/USD slipping 0.11% to 1.5886 and USD/CHF edging up 0.01% to 0.9173.
Markets were awaiting the U.K. jobs report for October later in the session, as well as the Bank of England’s quarterly inflation report after data on Tuesday showed that the annual rate of inflation in the U.K. dropped to the lowest level in more than a year last month.
The greenback pushed higher against the Australian dollar, with AUD/USD down 0.17% to 0.9284.
Data released on Wednesday showed that the Westpac consumer sentiment index rebounded this month, rising 1.9% after falling 2.1% in October as rising house prices bolstered confidence.
The greenback was mixed against the New Zealand and Canadian dollars, with NZD/USD slipping 0.10% to 0.8214 and USD/CAD dipping 0.07% to 1.0486.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.02% to 81.23.
During European morning trade, USD/JPY dipped 0.10% to 99.52, holding just below the two month high of 99.79 struck on Tuesday.
Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.
Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.
The euro was fractionally lower against the dollar, with EUR/USD edging down 0.05% to 1.3428.
The euro remained supported, holding onto gains made in the wake of last week’s broad based selloff when the European Central Bank unexpectedly cut rates to a record low 0.25%.
Elsewhere, the dollar little changed against the pound and the Swiss franc, with GBP/USD slipping 0.11% to 1.5886 and USD/CHF edging up 0.01% to 0.9173.
Markets were awaiting the U.K. jobs report for October later in the session, as well as the Bank of England’s quarterly inflation report after data on Tuesday showed that the annual rate of inflation in the U.K. dropped to the lowest level in more than a year last month.
The greenback pushed higher against the Australian dollar, with AUD/USD down 0.17% to 0.9284.
Data released on Wednesday showed that the Westpac consumer sentiment index rebounded this month, rising 1.9% after falling 2.1% in October as rising house prices bolstered confidence.
The greenback was mixed against the New Zealand and Canadian dollars, with NZD/USD slipping 0.10% to 0.8214 and USD/CAD dipping 0.07% to 1.0486.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.02% to 81.23.