Dollar off session lows against yen, euro eases

Print This!

The U.S. dollar pulled back from session lows against the yen and eased against the euro on Tuesday following the release of a batch of mixed U.S. data.

Concerns over the U.S. debt ceiling continued to weigh on market sentiment.

During U.S. morning trade, the dollar eased back from session lows against the yen, with USD/JPY down 0.77% to 88.76, up from session lows of 88.29.

The Commerce Department said U.S. retail sales rose 0.5% in December, beating expectations for a 0.2% gain.

A separate report showed that producer prices in the U.S. fell 0.2% last month, compared to expectations for a 0.1% decline.

Dollar demand continued to remain supported amid uncertainty over the U.S. debt ceiling deadlock, after President Barack Obama urged Republicans on Monday to approve an increase in the borrowing limit without seeking policy concessions in return.

The yen strengthened broadly earlier after Japan’s Economy Minister Akira Amari said that a weak yen could have a negative impact on the economy by pushing up import prices. The comments sparked profit taking ahead of the Bank of Japan’s upcoming policy meeting next week.

The greenback trimmed gains against the euro, with EUR/USD down 0.27% to 1.3344, up from session lows of 1.3311.

Sentiment on the euro was hit after preliminary data showed that Germany’s economy contracted by 0.5% in the fourth quarter, bringing the annual rate of growth to 0.7%, a sharp slowdown from 3% growth in 2011.

A separate report showed that the euro zone trade surplus widened to EUR11 billion in November from EUR7.4 billion in October, as exports rose 5%.

The greenback was almost unchanged against the pound, with GBP/USD inching up 0.01% to 1.6080.

In the U.K., official data showed that consumer inflation remained unchanged at 2.7% in December, broadly in line with expectations, as increases in electricity and gas bills were offset by falling fuel costs.

Pages: Next

Be kind & share...Share on Facebook0Tweet about this on Twitter0Share on LinkedIn0Pin on Pinterest0Share on Google+0Digg this

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

Go to Wall Street Sector Selector Home or Check our Special Wall Street News Section

Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeVisit Us On Linkedin
Make sure you create your redirects.txt file and that it's readable by the redirect script.