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Markets

Dollar rebounds vs. yen, euro steady

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Investing.com - The dollar was broadly higher against the other major currencies on Tuesday, rising above 100 against the yen after steep falls in the previous session following unexpectedly weak U.S. manufacturing data.

During European morning trade, the dollar rebounded against the yen, with USD/JPY advancing 0.75% to 100.27 ahead of a speech on growth strategy by Japanese Prime Minister Shinzo Abe on Wednesday.

Prime Minister Abe was to lay out further strategies for economic growth, after the Bank of Japan unveiled unprecedented easing and the government boosted spending in order to combat deflation in the world's third largest economy.

The dollar fell below 100 per yen for the first time since May 9 on Monday after data showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May.

The weak data dampened expectations that the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program later this year.

The euro was little changed against the dollar, with EUR/USD dipping 0.01% to 1.3074.

The dollar pushed higher against the pound, with GBP/USD sliding 0.14% to 1.5295.

The dollar was also higher against the Swiss franc, with USD/CHF rising 0.21% to 0.9490.

The greenback was stronger against its Australian, New Zealand and Canadian counterparts, with AUD/USD falling 0.96% to 0.9671, NZD/USD dropping 0.91% to 0.8015 and USD/CAD adding 0.44% to trade at 1.0323.

Earlier Tuesday the Reserve Bank of Australia kept interest rates at a record-low 2.75% and said that the inflation outlook left room to lower rates further if necessary.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.14% to 82.84.

The U.S. was to release official data on the trade balance later in the day.

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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.

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