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Dollar higher vs. yen, 100 level in sight

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Investing.com - The dollar was higher against the yen on Monday, extending gains from the previous session after the Group of 20 nations indicated that they approved of Japan's aggressive monetary easing policies.

During European late morning trade, the dollar re-approached the key psychological 100 level against the yen, with USD/JPY rising 0.25% to 99.76.

The yen resumed its weakening trend after the G-20 said Japan's recent policy actions are aimed at beating deflation and not at competitively weakening the yen.

Japan's Finance Minister Taro Aso said the Bank of Japan's unprecedented easing has resulted in a weaker yen, but only as a by-product of measures to end deflation and spur growth.

The dollar was little changed against the euro, with EUR/USD dipping 0.03% to 1.3044.

The euro had found support after Italy re-elected President Giorgio Napolitano on Saturday, an important development as the country attempted to break an ongoing political deadlock.

Earlier Monday, European Central Bank Vice-President Vitor Constancio said a rate cut is always a possibility and is dependent on economic data.

The dollar was almost unchanged against the pound and the Swiss franc, with GBP/USD inching up 0.05% to 1.5236 and USD/CHF edging up 0.03% to 0.9341.

The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.10% to 1.0267, NZD/USD edging up 0.05% to 0.8422 and USD/CAD slipping 0.14% to 1.0252.

The Australian dollar fell as recent weakness in global commodities prices weighed.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was flat at 82.89.

The euro zone was to release a report on consumer confidence later Monday, while the U.S. was to release private sector data on existing home sales.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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