Investing.com - The dollar retreated from almost four-year highs against the yen on Tuesday but the yen looked likely to continue its weakening trend amid the continuing effects of the Bank of Japan’s monetary stimulus program.
During European late morning trade, the dollar eased back from its highest level since May 2009 against the yen, with USD/JPY down 0.50% to 98.85.
The dollar eased as investors locked in profits, but expectations mounted that the dollar would soon break the 100.00 mark.
Last week the BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases in a bid to achieve its 2% inflation target.
The dollar was lower against the euro, with EUR/USD rising 0.25% to 1.3039.
Earlier Tuesday, data showed that German exports and imports fell unexpectedly in February, down 1.5% and 3.8% respectively, adding to concerns over the outlook for the euro zone’s largest economy.
The dollar was lower against the pound, with GBP/USD climbing 0.36% to 1.5308.
Sterling found support after official data showed that U.K. manufacturing production rose by 0.8% in February, beating expectations for a 0.3% increase.
However, January’s figure was revised down to a fall of 1.9% from a previously reported drop of 1.5%.
Industrial production in the U.K. rose by 1% in February, compared to expectations for a 0.3% increase
A separate report showed that the U.K. trade deficit widened to GBP 9.4 billion in February from GBP8.2 billion in January, compared to expectations for a deficit of GBP8.6 billion.
The dollar was almost unchanged against the Swiss franc, with USD/CHF dipping 0.02% to 0.9351.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching down 0.07% to 1.0160, AUD/USD advancing 0.49% to 1.0462 and NZD/USD rising 0.23% to 0.8478.
The commodity linked currencies found support after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%.
The data eased concerns over further policy tightening by the Chinese government.
The New Zealand dollar was boosted after a report showed that an index of business confidence in New Zealand rose to 23 in the first quarter from a reading of 20 in the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.27% to 82.66.
During European late morning trade, the dollar eased back from its highest level since May 2009 against the yen, with USD/JPY down 0.50% to 98.85.
The dollar eased as investors locked in profits, but expectations mounted that the dollar would soon break the 100.00 mark.
Last week the BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases in a bid to achieve its 2% inflation target.
The dollar was lower against the euro, with EUR/USD rising 0.25% to 1.3039.
Earlier Tuesday, data showed that German exports and imports fell unexpectedly in February, down 1.5% and 3.8% respectively, adding to concerns over the outlook for the euro zone’s largest economy.
The dollar was lower against the pound, with GBP/USD climbing 0.36% to 1.5308.
Sterling found support after official data showed that U.K. manufacturing production rose by 0.8% in February, beating expectations for a 0.3% increase.
However, January’s figure was revised down to a fall of 1.9% from a previously reported drop of 1.5%.
Industrial production in the U.K. rose by 1% in February, compared to expectations for a 0.3% increase
A separate report showed that the U.K. trade deficit widened to GBP 9.4 billion in February from GBP8.2 billion in January, compared to expectations for a deficit of GBP8.6 billion.
The dollar was almost unchanged against the Swiss franc, with USD/CHF dipping 0.02% to 0.9351.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching down 0.07% to 1.0160, AUD/USD advancing 0.49% to 1.0462 and NZD/USD rising 0.23% to 0.8478.
The commodity linked currencies found support after official data showed that the annual rate of Chinese consumer inflation eased to 2.1% in March from 3.2% in February and below forecasts for 2.4%.
The data eased concerns over further policy tightening by the Chinese government.
The New Zealand dollar was boosted after a report showed that an index of business confidence in New Zealand rose to 23 in the first quarter from a reading of 20 in the previous quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.27% to 82.66.