Investing.com - The dollar rose to more than two-week highs
against the yen on Monday as market sentiment was boosted by
prospects for stimulus measures by China, while the euro
strengthened after weak euro area inflation data fuelled
expectations for further easing from the European Central Bank.
USD/JPY was up 0.38% to 103.22, the highest level since March
Risk appetite returned to markets after Chinese premier Li
Keqiang said Friday the country has policies in place to support
economic growth. The remarks eased concerns over recent signs of a
slowdown in the world's second-largest economy.
EUR/USD was up 0.23% to 1.3783, up from session low of
The single currency briefly touched session lows after
preliminary data showed that the annual rate of inflation in the
euro zone fell to the lowest level since November 2009 in
Consumer inflation in the euro area slowed to 0.5% this month
from 0.7% in February, undershooting expectations for a reading of
0.6%. The ECB targets an inflation rate of just under 2%.
The report showed that core inflation rose 0.8% in March, in
line with forecasts, but was down from 1.0% in February.
The euro moved higher amid expectations that the ECB could take
steps to bolster the fragile recovery in the euro area at its
upcoming policy meeting on Thursday. Last month the central bank
left rates on hold, but indicated that it was prepared to take
decisive action if the inflation outlook continued to
The pound was unchanged against the dollar, with GBP/USD trading
at 1.6635, while USD/CHF was down 0.23% to 0.8847.
Sterling showed little reaction after data on Monday showed that
U.K. mortgage approvals fell in February while business lending
NZD/USD remained supported at 0.8656, holding just below the
two-and-a-half year peaks of 0.8696 struck on Friday.
The Australian dollar backed off Friday's four month highs, with
AUD/USD sliding 0.19% to 0.9229, while USD/CAD dipped to
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, slid 0.11%
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