Investing.com – The dollar extended losses against the yen on Wednesday, after the Bank of Japan trimmed the size of its bond purchases in the prior session, sparking speculation that it could start to scale back its monetary stimulus later this year.
was down 0.64% at 111.94 by 02:58 AM ET (07:58 AM GMT) from a low of 111.77 earlier, which was the weakest level since December 1.
The yen spiked after the BoJ in its latest market operation on Tuesday, reminding investors that it will eventually normalize monetary policy.
The Japanese currency was also higher against the euro, with down 0.63% to 133.62.
The euro was hovering near one-and-a-half week lows against the dollar, with at 1.1939 after losing around 0.33% on Monday.
The euro has weakened in recent sessions as investors took profits after its rally at the start of the year amid concerns that the European Central Bank may attempt to talk down the strengthening currency ahead of its monetary policy meeting later this month.
After getting off to a strong start to the year the single currency had hit a four-month high of 1.2088 on Thursday, putting it within striking distance of a September peak of 1.2092, its strongest level since early 2015.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.1% to 92.14 from Tuesday’s one-week high of 92.36.
Demand for the dollar continued to be underpinned by expectations for further interest rates hikes by the Federal Reserve this year after Friday’s U.S. jobs report did little to alter the outlook for monetary tightening.
While the rate of jobs growth cooled in December a pick-up in wage growth pointed to strength in the labor market.
Sterling slid lower against the dollar, with losing 0.21% to trade at 1.3510.
The Australian dollar was little changed, with at 0.7824 while the New Zealand dollar pushed higher, with rising 0.22% to 0.7178.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Latest posts by investing.com (see all)
- Forex- U.S. Dollar Falls as Sterling Rises - March 20, 2018
- Forex – GBP/USD Surge Above $1.40 Weighs on Dollar Ahead of FOMC - March 19, 2018
- Forex – Dollar Index Holds Steady with Fed Meeting in Focus - March 19, 2018