Investing.com - The dollar hit fresh two-and-a-half year highs against the yen on Wednesday and dropped to 14-month lows against the euro, as investors awaited the outcome of the Federal Reserve’s latest policy meeting and U.S. growth data later in the day.
During European late morning trade, the dollar rose to its highest levels since mid-June 2010 against the yen, with USD/JPY up 0.66% to 91.30.
Market sentiment found support ahead of a series of significant U.S. economic events, including preliminary data on U.S. fourth quarter growth and the outcome of the Fed’s policy setting meeting later Wednesday.
The U.S. central bank was expected to reaffirm its commitment to its easing program until the unemployment rate falls below 6.5%.
The U.S. was also to release data on January’s ADP nonfarm payrolls, ahead of Friday’s government data on nonfarm payrolls.
In Japan, Prime Minister Shinzo Abe rejected criticism that Japan’s fiscal and monetary stimulus program was aimed at weakening the yen on Wednesday, saying the measures were aimed at combating deflation.
The greenback hit 14-month lows against the euro, with EUR/USD advancing 0.47% to 1.3555 as sentiment on the single currency continued to be underpinned by indications that the worst of the crisis in the euro zone is over.
The euro shrugged off data showing that Spain’s economy contracted by 0.7% in the three months to December, bringing the annualized rate of contraction to a larger-than-forecast 1.8%.
The greenback was almost unchanged against the pound, with USD/GBP inching up 0.02% to 1.5764.
Sterling found support after data showed that net lending to individuals in the U.K. rose to the highest level since April last month, while mortgage approvals rose to 56,000 from 54,000 in November.
Elsewhere, the dollar was lower against the Swiss franc, with USD/CHF down 0.55% to 0.9162.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.17% to 1.0028, AUD/USD sliding 0.39% to 1.0432 and NZD/USD skidding 0.75% to 0.8330.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.19% to 79.45.
During European late morning trade, the dollar rose to its highest levels since mid-June 2010 against the yen, with USD/JPY up 0.66% to 91.30.
Market sentiment found support ahead of a series of significant U.S. economic events, including preliminary data on U.S. fourth quarter growth and the outcome of the Fed’s policy setting meeting later Wednesday.
The U.S. central bank was expected to reaffirm its commitment to its easing program until the unemployment rate falls below 6.5%.
The U.S. was also to release data on January’s ADP nonfarm payrolls, ahead of Friday’s government data on nonfarm payrolls.
In Japan, Prime Minister Shinzo Abe rejected criticism that Japan’s fiscal and monetary stimulus program was aimed at weakening the yen on Wednesday, saying the measures were aimed at combating deflation.
The greenback hit 14-month lows against the euro, with EUR/USD advancing 0.47% to 1.3555 as sentiment on the single currency continued to be underpinned by indications that the worst of the crisis in the euro zone is over.
The euro shrugged off data showing that Spain’s economy contracted by 0.7% in the three months to December, bringing the annualized rate of contraction to a larger-than-forecast 1.8%.
The greenback was almost unchanged against the pound, with USD/GBP inching up 0.02% to 1.5764.
Sterling found support after data showed that net lending to individuals in the U.K. rose to the highest level since April last month, while mortgage approvals rose to 56,000 from 54,000 in November.
Elsewhere, the dollar was lower against the Swiss franc, with USD/CHF down 0.55% to 0.9162.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.17% to 1.0028, AUD/USD sliding 0.39% to 1.0432 and NZD/USD skidding 0.75% to 0.8330.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.19% to 79.45.