Investing.com - The dollar fell against the yen on Thursday after less-than-stellar U.S. economic indicators sent investors selling the greenback on the notion that monetary policy will remain loose even as the Federal Reserve scales back stimulus programs.
In U.S. trading, USD/JPY was down 0.22% and trading at 104.36, up from a session low of 104.15 and off a high of 104.92.
The pair was expected to test support at 102.86, Monday's low, and resistance at 105.31, Friday's high.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Jan. 11 declined by 2,000 to 326,000 from the previous week’s revised total of 328,000. Analysts had expected U.S. jobless claims to hold steady last week.
A separate report showed that the U.S. consumer price index rose by 0.3% in December, in line with forecasts after holding flat in November.
Core consumer prices, which are stripped of volatile food and energy costs, inched up 0.1% last month, also meeting estimates. Core consumer prices rose 0.2% in November.
The country's year-on-year inflation rate expanded by 1.5%, still below the Fed's 2.0% target, which served as a reminder that as the Federal Reserve scales back its USD75 billion bond-buying program this year, it will do so gradually at best, while monetary tightening remains far off on the horizon.
Fed bond purchases aim to spur recovery by suppressing long-term interest rates, thus keeping the dollar soft as long as they remain in effect.
Elsewhere, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to 9.4 in January from 6.4 in December. Analysts had expected a reading of 8.6.
However, indicators of future activity moderated, the report added, but they continued to indicate general optimism concerning economic growth over the next six months, which gave the greenback some support.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY trading down 0.27% at 141.90, and GBP/JPY trading down 0.36% at 170.59.
On Friday, the U.S. is to wrap up the week with the closely watched preliminary reading of the University of Michigan consumer sentiment index. The U.S. is also to release data on building permits, housing starts and industrial production.
In U.S. trading, USD/JPY was down 0.22% and trading at 104.36, up from a session low of 104.15 and off a high of 104.92.
The pair was expected to test support at 102.86, Monday's low, and resistance at 105.31, Friday's high.
The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending Jan. 11 declined by 2,000 to 326,000 from the previous week’s revised total of 328,000. Analysts had expected U.S. jobless claims to hold steady last week.
A separate report showed that the U.S. consumer price index rose by 0.3% in December, in line with forecasts after holding flat in November.
Core consumer prices, which are stripped of volatile food and energy costs, inched up 0.1% last month, also meeting estimates. Core consumer prices rose 0.2% in November.
The country's year-on-year inflation rate expanded by 1.5%, still below the Fed's 2.0% target, which served as a reminder that as the Federal Reserve scales back its USD75 billion bond-buying program this year, it will do so gradually at best, while monetary tightening remains far off on the horizon.
Fed bond purchases aim to spur recovery by suppressing long-term interest rates, thus keeping the dollar soft as long as they remain in effect.
Elsewhere, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to 9.4 in January from 6.4 in December. Analysts had expected a reading of 8.6.
However, indicators of future activity moderated, the report added, but they continued to indicate general optimism concerning economic growth over the next six months, which gave the greenback some support.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY trading down 0.27% at 141.90, and GBP/JPY trading down 0.36% at 170.59.
On Friday, the U.S. is to wrap up the week with the closely watched preliminary reading of the University of Michigan consumer sentiment index. The U.S. is also to release data on building permits, housing starts and industrial production.