Investing.com - The dollar fell against the yen on Thursday in the wake of stronger-than-expected quarterly growth figures in Japan as well as on talk U.S. Federal Reserve policymakers haven't shut the door on monetary easing measures, which weakened the greenback globally.
Despite solid growth figures in Japan, the market remained convinced the Bank of Japan won't halt taking steps to weaken the yen, which tempered its gains.
In Asian trading on Thursday, USD/JPY hit 80.32, down 0.02%, up from a low of 80.26 and off a high of 80.40.
The pair sought to test support at 79.69, the low from May 14, and resistance at 80.55, the high on May 16.
In Japan, the government reported the country's gross domestic product grew 1% in the first quarter from the fourth quarter, beating out market calls for 0.9% growth.
The country's GDP shrank 0.2% in the fourth quarter.
Meanwhile in the U.S., the Federal Reserve released the minutes of its latest monetary policy meeting earlier, revealing some policymakers favor rolling out monetary easing measures to jolt the economy should recovery wane.
"Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough," the Federal Reserve minutes read.
Easing measures tend to weaken the greenback by flooding the economy with liquidity to push long-term interest rates low and encourage expansion and hiring.
Still, the dollar saw some support against the yen on sentiment the Bank of Japan won't veer from its policy of weakening the Japanese currency.
The Bank of Japan has said it would expand a bond-back program by JPY10 trillion to weaken the currency and assist the country's vital export-driven economy.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.02% and trading at 127.85 and EUR/JPY up 0.12% and trading at 102.28.
Later Thursday, the U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.
Despite solid growth figures in Japan, the market remained convinced the Bank of Japan won't halt taking steps to weaken the yen, which tempered its gains.
In Asian trading on Thursday, USD/JPY hit 80.32, down 0.02%, up from a low of 80.26 and off a high of 80.40.
The pair sought to test support at 79.69, the low from May 14, and resistance at 80.55, the high on May 16.
In Japan, the government reported the country's gross domestic product grew 1% in the first quarter from the fourth quarter, beating out market calls for 0.9% growth.
The country's GDP shrank 0.2% in the fourth quarter.
Meanwhile in the U.S., the Federal Reserve released the minutes of its latest monetary policy meeting earlier, revealing some policymakers favor rolling out monetary easing measures to jolt the economy should recovery wane.
"Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough," the Federal Reserve minutes read.
Easing measures tend to weaken the greenback by flooding the economy with liquidity to push long-term interest rates low and encourage expansion and hiring.
Still, the dollar saw some support against the yen on sentiment the Bank of Japan won't veer from its policy of weakening the Japanese currency.
The Bank of Japan has said it would expand a bond-back program by JPY10 trillion to weaken the currency and assist the country's vital export-driven economy.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.02% and trading at 127.85 and EUR/JPY up 0.12% and trading at 102.28.
Later Thursday, the U.S. is to produce government data on unemployment claims, followed by a report on manufacturing activity in the Philadelphia area.