Investing.com - The yen lost ground in early Asia on Monday with markets shut in Japan for a holiday and no major data scheduled for release in the region.
USD/JPY traded at 117.86, up 0.06%, while AUD/USD held flat at 0.8672. EUR/USD traded down 0.17% at 1.2370.
Last week, the euro dropped sharply against the dollar and the yen on Friday after European Central Bank President Mario Draghi indicated that it is moving closer to quantitative easing, while the yen moved higher against the dollar following comments by Japan’s finance minister.
The dollar ended the day lower against the yen on Friday after Japan’s Finance Minister Taro Aso voiced concerns over the weaker yen, saying the speed of the currency’s recent decline against the dollar was “too fast.”
The yen has weakened broadly since the Bank of Japan unexpectedly expanded its stimulus program late last month. In contrast the Federal Reserve wound up its asset purchase program last month is expected to start raising rates around September 2015.
Elsewhere Friday, the commodity linked currencies were boosted after China’s central bank unexpectedly cut interest rates for the first time in more than two years.
The move came in response to recent signs of a slowdown in the world’s second-largest economy and boosted the demand outlook for raw materials.
The US dollar index, a trade-weighted basket of major currencies against the dollar, closed Friday at 88.39, up 0.78%.
In the week ahead, investors will be looking ahead to Friday’s preliminary report on euro zone inflation.
The U.S. is to release a string of economic reports on Wednesday ahead of Thursday’s Thanksgiving holiday, including a look at unemployment claims and durable goods orders. Tuesday’s speech by Bank of Japan Governor Haruhiko Kuroda will also be closely watched.
On Monday, Switzerland is to release data on the employment level. The Ifo Institute is to release its report on German business climate.