Investing.com - The yen gained slightly in Asia on Tuesday in a light regional data day as investors await word from the Federal Reserve and Bank of Japan this week on monetary policies.
USD/JPY changed hand sat 111.15, down 0.04%, while AUD/USD traded at 0.7715, flat.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted adown 0.40% at 94.73, off Friday’s one-week high of 95.18.
Overnight, the dollar remained broadly lower against the other major currencies on Monday, after the release of weak U.S. housing sector data and as sentiment on the greenback remained fragile ahead of the Federal Reserve’s policy meeting this week.
The U.S. Commerce Department said new home sales declined by 1.5% to 511,000 units last month. New home sales in February were revised to show a 0.4% decline to 519,000 units, from the prior reading of a 2.0% gain.
Analysts had expected a 1.0% rise from the initial February number to a total of 520,000 units. Traders were looking ahead to the Fed’s upcoming policy meeting, due to conclude on Wednesday for further indications on the pace and timing of future rate hikes.
The yen dropped by 2.1% against the dollar on Friday after Bloomberg reported that the Bank of Japan could expand the negative interest rate policy it put in place in January at the conclusion of its two day policy meeting on Thursday.
Some investors believe the bank will not roll out further easing measures as it continues to assess the impact of the negative interest rate policy it adopted in January.
Most analysts expect the BoJ to cut its forecasts for growth and inflation as the strong yen and a severe earthquake this month which has disrupted supply chains cloud the economic outlook.