The dollar edged higher against the yen on Wednesday but gains looked likely to be held in check ahead of the outcome of the Federal Reserve’s latest policy meeting, later in the trading day.USD/JPY edged up 0.08% to 101.51, and was trading in a range of 101.30 to 101.64.The pair was likely to find support at last Friday’s trough of 101.19 and resistance at 101.80. The U.S. central bank was widely expected to continue to roll back its bond purchasing program by $10 billion at the conclusion of its monthly meeting later Wednesday, the first with Janet Yellen at the helm. Data released on Tuesday indicated that the economic recovery in the U.S. remains sluggish. The annual rate of inflation slowed to 1.1% in February from 1.6% in January. A separate report showed that building permits rose more than expected last month following a steep drop in January, but housing starts slipped.The yen shrugged off data on Wednesday showing that Japan reported a larger-than-forecast trade deficit in February, as spiraling energy imports offset import costs. Elsewhere, the euro was almost unchanged against the yen, with EUR/JPY edging up 0.02% to 141.36.The common currency fell against the yen and the dollar on Tuesday after the closely watched ZEW index of German economic sentiment deteriorated in March, as concerns over the crisis in Ukraine weighed. The euro slipped lower against the dollar, with EUR/USD sliding 0.09% to 1.3920, holding below last Thursday’s peaks of 1.3966, the strongest level in two-and-a-half years.
Posted on: Wed, 19 Mar 2014 07:54:16 +0000