Investing.com - The dollar backed off seven year peaks against the yen on Thursday as investors booked profits ahead of key economic events, including the European Central Bank meeting later in the day and Friday’s U.S. nonfarm payrolls report.
USD/JPY slid 0.17% to 114.46, coming off the highs of 115.52 struck overnight, the most since November 2007.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was down 0.21% to 87.35, holding below Wednesday’s four-and-a-half year highs of 87.72.
The dollar rallied on Wednesday, boosted by Republican gains in the U.S. mid-term elections and a report showing that the private sector added more jobs than forecast last month.
The ADP nonfarm payrolls report showed that the U.S. private sector added 230,000 jobs last month, ahead of expectations for jobs growth of 220,000.
Separately, the Institute of Supply Management said that its non-manufacturing index slowed to 57.1 last month from 58.6 in September, but the employment component of the index rose, boosting the outlook for the labor market.
Investors were awaiting the outcome of the ECB meeting later in the day after the Bank of Japan’s surprise stimulus move on Friday fuelled expectations that it will soon follow suit in order to spur growth and inflation in the euro area.
The bank’s latest policy announcement was given extra significance following recent reports of tensions within the ECB over President Mario Draghi’s leadership style.
EUR/USD was up 0.24% to 1.2513, not far from Monday’s two year lows of 1.2437.