Investing.com – The dollar gained against the yen on Tuesday after disappointing PPI figures from Japan lifted sentiment on the greenback which has been battered by yen and euro strength as views evolve on whether central banks in Japan and Europe are set to move to tougher monetary policies in 2018.
changed hands at 110.76, up 0.21%, while traded at 0.7965, down 0.01%.
Japan reported producer prices on Tuesday came in with a 0.2% gain , compared with a 0.4% gain seen for December and at a 3.1% , missing the 3.2% rise expected.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.54% to 90.13.
Overnight, the dollar continued to fall against a currency basket on Monday amid speculation that the European Central Bank is preparing to scale back its massive stimulus program, as trading remained thin on a U.S. holiday.
Trade volumes are expected to remain light on Monday as U.S. markets are closed for the Martin Luther King Day holiday. The euro was bolstered by investor speculation that ECB policy makers are preparing to wind down their bond buying stimulus program.
A faster rate of monetary tightening outside the U.S. would lessen the divergence between the Federal Reserve and other central banks, weighing on the dollar.
Against the yen, the dollar fell to its lowest levels since mid-September with the yen boosted by comments from Bank of Japan Governor Haruhiko Kuroda on Monday highlighting the country’s economic recovery.
Sterling also pushed higher against the dollar, with rising 0.59% to 1.3807, the most since Britain’s vote to exit the European Union in June 2016. The pound rallied on Friday following a report that the Netherlands and Spain are open to a deal for Britain to remain as close as possible to the EU after Brexit.
The pound shrugged off a subsequent denial of the report from officials from the Spanish and Dutch finance ministries.
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