Dollar off lows vs. yen, euro gains ground

Shutterstock photo - The U.S. dollar pulled back from session lows against the yen on Wednesday, while the euro pushed higher against the dollar following remarks by a senior European Central Bank policymaker.

During European late morning trade, the dollar trimmed losses against the yen, with USD/JPY down 0.59% to 88.25, up from a session low of 87.80.

The yen turned lower after Kazumasa Iwata, widely regarded as a frontrunner for the next Bank of Japan governor, said quantitative easing was an effective way to combat deflation.

The greenback erased gains against the euro, with EUR/USD rising 0.12% to 1.3319.

The euro found support after senior ECB policymaker Ewald Nowotny said the euro exchange rate was "not a matter of major concern."

The euro hit session lows earlier after Jean-Claude Juncker, the head of the euro group of finance ministers, said Tuesday that the euro's value was "dangerously high" and posed a threat to the recovery in the euro zone.

Safe haven demand continued to be supported after the World Bank cut its forecast for global growth to 2.4% this year from 3% in June and warned that developing nations would struggle in 2013.

The greenback was slightly higher against the pound, with GBP/USD down 0.12% to 1.6046.

The greenback was lower against the Swiss franc, with USD/CHF shedding 0.34% to trade at 0.9287.

The Swiss franc was little changed after official data showed that retail sales in Switzerland rose by an annualized 2.9% in November, missing expectations for a 3.2% gain.

The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.13% to trade at 0.9854, AUD/USD dipping 0.08% to 1.0556 and NZD/USD inching down 0.02% to 0.8395.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.12% to 79.67.

The U.S. was to release official data on consumer inflation and industrial production later in the trading day. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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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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