Dollar pushes higher vs. yen, euro gains
Investing.com
Published Jan 07, 2014 08:25AM ET
Dollar rises against yen but gains capped
USD/JPY rose to session highs of 104.62 and was last up 0.16% to 104.38.
The dollar’s gains were held in check after data on Monday showed the service sector activity in the U.S. slower for a second month in December, led lower by a drop in new orders.
Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for indications on the possible timing of further reductions in Fed stimulus.
The euro was higher against the dollar, with EUR/USD rising to session highs of 1.3536. The pair was last up 0.11% to 1.3640.
The yield on Irish 10-year government bonds fell to 3.26% on Tuesday, the lowest level since 2009, following strong demand at a sale of the country’s new 10-year bonds, the first offering since it exited its bailout last month.
But the euro struggled to build on gains after data showed that the annual rate of inflation in the euro zone slowed to 0.8% in December from 0.9% the previous month, nearing the four year low of 0.7% hit in October.
Elsewhere, data released on Tuesday showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000.
The country’s unemployment rate remained steady at 6.9%.
A separate report showed that German retail sales rose 1.5% in November, more than double expectations for an increase of 0.6%.
The dollar was almost unchanged against the pound, with GBP/USD inching up 0.02% to 1.6408 and was higher against the Swiss franc, with USD/CHF up 0.34% to 0.9070.
The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.45% to 0.8927, NZD/USD inching up 0.01% to trade at 0.8293 and USD/CAD climbing 0.38% to 1.0695.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, ticked up 0.04% to 80.84.
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Written By: Investing.com
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