Investing.com - The dollar weakened against the yen on Monday amid sentiments the Federal Reserve remains on track to keep monetary stimulus programs in place through early 2014, while soft data out of the housing sector also softened the greenback.
In U.S. trading on Monday, USD/JPY was trading at 100.12, down 0.06%, up from a session low of 99.79 and off a high of 100.39.
The pair was likely to find support at 99.11, Wednesday's low, and resistance at 100.43, Friday's high.
Fed Chair Nominee Janet Yellen told the Senate Banking Committee last week that the U.S. central bank remains committed to purchasing USD85 billion in Treasury holdings and mortgage debt a month to prop up the economy, a monetary policy tool known as quantitative easing that weakens the dollar by driving down interest rates.
The dollar did come off earlier lows, however, after Federal Reserve Bank of New York President William C. Dudley said he was growing more and more hopeful that the U.S. economy is improving and added fiscal uncertainties may no longer be dragging down recovery as in recent months.
"While growth in 2013 has been disappointing, I believe a good case can be made that the pace of growth will pick up some in 2014 and then somewhat more in 2015. The private sector of the economy should continue to heal, while the amount of fiscal drag should subside," Dudley said in prepared remarks of a speech he delivered at Queens College, Flushing, New York.
"Despite near-term concerns, growth prospects among our major trading partners will improve further next year. This combination of events is likely to create an environment in which business investment spending will strengthen."
Elsewhere, National Association of Home Builders/Wells Fargo Housing Market Index came in unchanged in November at 54, missing analysts' calls for an uptick to 55 this month.
Rising stock prices in the U.S. and Europe enticed many investors out of safe-haven dollar positions as well.
The yen was up against the pound and down against the euro, with GBP/JPY down 0.13% and trading at 161.28 and EUR/JPY trading up 0.01% at 135.23.
On Tuesday, the U.S. is to release data on the employment cost index, an important inflationary indicator.
In U.S. trading on Monday, USD/JPY was trading at 100.12, down 0.06%, up from a session low of 99.79 and off a high of 100.39.
The pair was likely to find support at 99.11, Wednesday's low, and resistance at 100.43, Friday's high.
Fed Chair Nominee Janet Yellen told the Senate Banking Committee last week that the U.S. central bank remains committed to purchasing USD85 billion in Treasury holdings and mortgage debt a month to prop up the economy, a monetary policy tool known as quantitative easing that weakens the dollar by driving down interest rates.
The dollar did come off earlier lows, however, after Federal Reserve Bank of New York President William C. Dudley said he was growing more and more hopeful that the U.S. economy is improving and added fiscal uncertainties may no longer be dragging down recovery as in recent months.
"While growth in 2013 has been disappointing, I believe a good case can be made that the pace of growth will pick up some in 2014 and then somewhat more in 2015. The private sector of the economy should continue to heal, while the amount of fiscal drag should subside," Dudley said in prepared remarks of a speech he delivered at Queens College, Flushing, New York.
"Despite near-term concerns, growth prospects among our major trading partners will improve further next year. This combination of events is likely to create an environment in which business investment spending will strengthen."
Elsewhere, National Association of Home Builders/Wells Fargo Housing Market Index came in unchanged in November at 54, missing analysts' calls for an uptick to 55 this month.
Rising stock prices in the U.S. and Europe enticed many investors out of safe-haven dollar positions as well.
The yen was up against the pound and down against the euro, with GBP/JPY down 0.13% and trading at 161.28 and EUR/JPY trading up 0.01% at 135.23.
On Tuesday, the U.S. is to release data on the employment cost index, an important inflationary indicator.