Forex - Yen weaker in early Asia ahead of scheduled Kuroda remarks

Investing.com - The Japanese yen fell in early Asian trade on Tuesday ahead of a busy day of scheduled remarks from Japan's central bank chief.

USD/JPY traded at 118.35, up 0.06%, while AUD/USD changed hands at 0.8616, flat. EUR/USD traded at 1.2441, down 0.01%.

BoJ Governor Haruhiko Kuroda speaks to business leaders in Nagoya City, central Japan at 100 Tokyo time (0100 GMT). Later in the day, at 1345 (0445 GMT), Kuroda holds a news conference in Nagoya.

He said said last week that the year-on-year increase in core CPI may slip below 1% in the near term, but consumer prices will pick up "at some point" as the output gap improves and inflation expectations rise.

Still in Tokyo, at 1300 (0400 GMT), ECB Governing Council member and BIS Chairman Christian Noyer together with BoJ Deputy Governor Hiroshi Nakaso are due to co-host a luncheon at a Paris EUROPLACE financial forum.

In Australia, RBA Deputy Governor Philip Lowe is due to speak at an Annual Australia Business Economists Dinner in Sydney at 2005 (0905 GMT).

Japan's October service PPI is due at 0850 (2350 GMT).

Overnight, the dollar traded mixed to lower against most major currencies on Monday in a session void of major economic indicators, as investors locked in gains stemming from a recent rally and sold the currency for profits especially on news of an improving German business climate.

Germany’s Ifo business climate index rose to 104.7 from 103.2 in October, confounding forecasts for a decline to 103.0.

The current conditions index rose to 110.0 from 108.4 last month and the expectations index improved to 99.7 from 98.3, both figures topping market forecasts.

The data helped offset expectations that the European Central Bank may loosen policy further to stimulate the economy, possibly rolling out purchases of government bonds.

Euro zone bond yields fell to record lows on Monday amid expectations that the ECB is moving closer to embarking on fresh stimulus measures to spur growth and inflation in the region.

The yield on Spanish 10-year bonds dropped below 2% for the first time, falling to 1.97%, while the yield on Irish 10-year bonds fell to 1.48% from 1.49% late Friday.

On Friday, ECB President Mario Draghi warned that inflation expectations were declining to levels that were very low and said the bank is ready to expand its stimulus program to boost inflation as quickly as possible.

Meanwhile in the U.S., financial data firm Markit reported earlier that its flash service-sector purchasing managers index hit 56.3 in November, slightly below expectations and the lowest since April, compared with October's final reading of 57.1.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% at 88.16.

On Tuesday, expect investors to track U.S. economic growth data as well as a U.S. consumer confidence report.