Euro held onto gains after a stellar performance on Tuesday when it gained 1.2 percent against the dollar to hit $1.32 for the first time in seven weeks.
The dollar was weakened on Tuesday after US data supported the case for ongoing Federal Reserve monetary stimulus.
CPI data for March showed that consumer prices in the US declined fell for the first time in four months while factory output declined, reinforcing the view that the Fed will continue with quantitative easing to stimulate growth.
The yen fell broadly as safe haven demand fell, under pressure ahead of the G20 meeting starting tomorrow. Japan has been subject to criticism lately for undertaking a currency war by weakening its currency through its monetary policy.
Japan has adopted policy easing steps in an effort to stimulate the economy and fight deflation. By increasing its bond purchases this month this has a weakening effect on the yen.
USDJPY saw a slow and steady grind higher to 98.42, moving further off Tuesday’s low of 95.78 yen. EURJPY traded up to 129.71, off yesterday’s low of 124.87.
AUDUSD opened in Asia at $1.0389 rose to $1.0392 after recovering yesterday on the back of AUDJPY demand but soon gave up some gains due to profit taking.
Gold prices remained steady after halting a sharp decline. Gold prices tumbled to a two-year low of $1,321 yesterday and have rebounded slightly to around $1,374.
Euro held onto gains after a stellar performance on Tuesday when it gained 1.2 percent against the dollar to hit $1.32 for the first time in seven weeks.
The dollar was weakened on Tuesday after US data supported the case for ongoing Federal Reserve monetary stimulus.
CPI data for March showed that consumer prices in the US declined fell for the first time in four months while factory output declined, reinforcing the view that the Fed will continue with quantitative easing to stimulate growth.
The yen fell broadly as safe haven demand fell, under pressure ahead of the G20 meeting starting tomorrow. Japan has been subject to criticism lately for undertaking a currency war by weakening its currency through its monetary policy.
Japan has adopted policy easing steps in an effort to stimulate the economy and fight deflation. By increasing its bond purchases this month this has a weakening effect on the yen.
USDJPY saw a slow and steady grind higher to 98.42, moving further off Tuesday’s low of 95.78 yen. EURJPY traded up to 129.71, off yesterday’s low of 124.87.
AUDUSD opened in Asia at $1.0389 rose to $1.0392 after recovering yesterday on the back of AUDJPY demand but soon gave up some gains due to profit taking.
Gold prices remained steady after halting a sharp decline. Gold prices tumbled to a two-year low of $1,321 yesterday and have rebounded slightly to around $1,374.
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