Dollar Gains Against Yen In Early Asia In Light Data Day
The dollar gained against the yen in early Asia on Monday in a light data day ahead regionally with the progress of a US tax cut package in focus this week along with changes at the Fed.
USD/JPY changed hands at 111.66, up 0.12%, while AUD/USD traded at 0.7613, down 0.04%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.34% to 92.72.
This week, the changing of the guard at the Federal Reserve will be a big focus for investors, as well as a number of Fed speakers scheduled, including both the current chair and next head of the U.S. central bank. U.S data on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed's preferred metric for inflation, will also be closely watched.
Last week, the dollar fell to its lowest level since mid-October against a basket of the other major currencies on Friday as euro zone data pointed to solid growth, while concerns lingered over the sluggish rate of U.S. inflation.
The dollar remained on the back foot after Wednesday’s minutes of the Federal Reserve’s November meeting showed that some officials were concerned inflation would stay below the bank's 2% target for longer than expected.
The minutes echoed comments by Fed Chair Janet Yellen earlier in the week that she was uncertain about the inflation outlook.
While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018, sending the dollar lower.
A report on Friday showed that German business confidence hit a record high in November, putting the euro area’s largest economy on track for a boom.
The data came one day after official data showed exports and rising business investments were the main drivers of euro zone growth in the third quarter, indicating that the robust upswing will extend well into next year.
The strong data helped offset concerns over political uncertainty in Germany, where Chancellor Angela Merkel is trying to form a minority coalition government after recent elections saw established parties loose seats in parliament