Investing.com - The dollar extended Monday's losses against the yen into Tuesday as expectations continued to build that the Federal Reserve will keep monetary policy loose after a two-day meeting ends Wednesday.
A worse-than-expected manufacturing gauge for the Midwest region of the U.S. pushed the greenback lower against its Japanese counterpart.
In U.S. trading on Tuesday, USD/JPY was trading at 97.52, down 0.26%, up from a session low of 97.02 and off a high of 98.12.
The pair was likely to find resistance at 98.20, Monday's high, and support at 97.02, the earlier low.
In the U.S., a manufacturing barometer for the Midwest region of the country disappointed earlier and weakened the dollar.
The Chicago purchasing managers’ index dropped 49.0 from 52.4 in March, defying expectations for a reading of 52.5.
Similar gauges for New York state and the Philadelphia area have disappointed in the recent past, and Tuesday's numbers out of Chicago stoked already growing expectations that the Federal Reserve will keep monetary stimulus tools in place, including its monthly USD85 billion bond-buying program, which weakens the dollar to spur recovery.
The Fed will conclude a two-day monetary policy on Wednesday.
Elsewhere in the U.S., housing and consumer-confidence data came in better than expected, which gave the dollar some support against the yen.
The S&P/Case-Shiller U.S. home price index rose at 9.3% in February from a year earlier, above expectations for a 9.0% increase.
Separately, the Conference Board said its index of U.S. consumer confidence rose to 68.1 in April from 61.9 in March, far above expectations for a reading of 60.8.
Expectations for the European Central Bank to cut interest rates capped the yen's gains.
Massive monetary stimulus measures underway at the Bank of Japan have bolstered the euro's appeal against the yen, as expectations have grown that Japanese investors will sell domestic assets and chase yield in Europe have come at the yen's expense.
The yen, meanwhile, was up against the pound and down against the euro, with GBP/JPY down 0.08% and trading at 151.44 and EUR/JPY trading up 0.16% at 128.28, mainly on hopes that ECB action will spark more robust recovery down the road.
On Wednesday, all eyes will focus on the Federal Reserve.
Elsewhere, the ADP nonfarm payrolls report on private-sector job creation as well as government data on crude oil stockpiles will hit the wire.
In addition, the Institute of Supply Management is release data on U.S. manufacturing activity.
A worse-than-expected manufacturing gauge for the Midwest region of the U.S. pushed the greenback lower against its Japanese counterpart.
In U.S. trading on Tuesday, USD/JPY was trading at 97.52, down 0.26%, up from a session low of 97.02 and off a high of 98.12.
The pair was likely to find resistance at 98.20, Monday's high, and support at 97.02, the earlier low.
In the U.S., a manufacturing barometer for the Midwest region of the country disappointed earlier and weakened the dollar.
The Chicago purchasing managers’ index dropped 49.0 from 52.4 in March, defying expectations for a reading of 52.5.
Similar gauges for New York state and the Philadelphia area have disappointed in the recent past, and Tuesday's numbers out of Chicago stoked already growing expectations that the Federal Reserve will keep monetary stimulus tools in place, including its monthly USD85 billion bond-buying program, which weakens the dollar to spur recovery.
The Fed will conclude a two-day monetary policy on Wednesday.
Elsewhere in the U.S., housing and consumer-confidence data came in better than expected, which gave the dollar some support against the yen.
The S&P/Case-Shiller U.S. home price index rose at 9.3% in February from a year earlier, above expectations for a 9.0% increase.
Separately, the Conference Board said its index of U.S. consumer confidence rose to 68.1 in April from 61.9 in March, far above expectations for a reading of 60.8.
Expectations for the European Central Bank to cut interest rates capped the yen's gains.
Massive monetary stimulus measures underway at the Bank of Japan have bolstered the euro's appeal against the yen, as expectations have grown that Japanese investors will sell domestic assets and chase yield in Europe have come at the yen's expense.
The yen, meanwhile, was up against the pound and down against the euro, with GBP/JPY down 0.08% and trading at 151.44 and EUR/JPY trading up 0.16% at 128.28, mainly on hopes that ECB action will spark more robust recovery down the road.
On Wednesday, all eyes will focus on the Federal Reserve.
Elsewhere, the ADP nonfarm payrolls report on private-sector job creation as well as government data on crude oil stockpiles will hit the wire.
In addition, the Institute of Supply Management is release data on U.S. manufacturing activity.