Investing.com - The yen gained sharply on Thursday in Asia on safe-haven buying and as Bank of Japan Governor Haruhiko Kuroda avoided talk on the currency at a meeting with regional colleagues.
USD/JPY changed hands at 109.18, down 0.56%, while AUD/USD traded at 0.7594, down 0.04%.
The AIG construction index came in at 45.2, down from 46.1, contracting for a fourth consecutive month and at a steeper rate as house-building activity contracted at its sharpest in 14 months.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.06% to 94.43.
Overnight, the dollar trimmed gains against the other major currencies on Wednesday, as investors digested the the Federal Reserve’s March policy meeting.
The minutes showed Wednesday Kansas City Fed President Esther George had some support of her view another rate hike was appropriate from a couple non-voting members.
The committee held steady the policy fed funds rate at 0.25% to 0.50% on a 9-1 vote with George dissenting from the decision preferring instead the committee raise the target range for the rate to 0.50% to 0.75%.
"Most participants," which includes all 17 board members and regional Fed presidents, agreed with the voting majority that it was appropriate to keep the fed funds rate where it has been since December when the FOMC raised rates for the first time since 2006.
"A couple of participants, however, saw an increase in the target range to 1/2 to 3/4 percent as appropriate at this meeting," the minutes said, "citing evidence that the economy was continuing to expand at a moderate rate despite developments abroad and earlier volatility in financial conditions, continued improvement in labor market conditions, the firming of inflation over recent months, and the apparent leveling-off of oil prices."
Earlier, the greenback had found support after the Institute of Supply Management said on Tuesday that its non-manufacturing purchasing manager's index improved to 54.5 last month from 53.4 in February. But gains were limited as data also showed that the U.S. trade deficit widened to $47.06 billion in Februray from $45.88 billion in January.
Investors were eyeing the minutes of the Fed’s March meeting due later Wednesday, for fresh indications on the future path of interest rates.
Meanwhile, the yen remained supported after Japan's Prime Minister Shinzo Abe said in an interview with the Wall Street Journal on Tuesday that countries should avoid weakening their currencies with "arbitrary intervention."
The yen’s gains have fueled speculation over how much higher the currency can climb before Japanese officials act to weaken it. The BoJ's Kuroda said Tuesday that he would act quickly to boost stimulus measures if necessary.