Dollar Down Against Yen Ahead Of Q3 GDP from Tokyo
The dollar fell against the yen in early Asia on Wednesday as investors looked ahead to third quarter GDP from Japan.
In Japan, third quarter GDP is due with a provisional 0.3% increase on quarter and a 1.3% pace for the year expected. Later, Australia reports its wage price index with a 0.7% rise seen on quarter and a 2.2% increase on year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.70% to 94.74.
Overnight, the dollar traded lower against a basket of currencies on Tuesday pressured by a surge in the euro to three-week highs following better-than expected economic growth data from Germany while upbeat US wholesale inflation data failed to stem losses in the greenback.
The dollar struggled to pare losses as upbeat wholesale inflation failed to offset negative sentiment on greenback amid a surge in both the euro and sterling.
The Labor Department said on Tuesday its producer price index for final demand increased 0.4% last month. In the 12 months through October, the PPI rose 2.8% after rising 2.6% in September.
The stronger wholesale inflation report comes ahead of consumer inflation data slated for Wednesday.
The euro rose 0.93% to $1.1776 against the dollar, a three-week high, after preliminary data showed that Germany, the Eurozone’s largest economy, grew 0.8% in third quarter of the year. That beat forecast of a 0.6% rise.
The sharp rise in German GDP spurred higher growth in broader Eurozone economy as initial estimates for third quarter economic growth showed the trading bloc grew at annualized rate of 2.5%.
Sterling, meanwhile, continued to trade higher against the greenback, despite a report showing both consumer and wholesale inflation for October undershot economist expectations