(RTTNews) - In the early European session on Tuesday, the euro advanced to a multi-day high against the yen after the release of better-than-expected Eurozone producer price inflation for August.
Eurozone producer price index advanced 2.7 percent year-on-year in August, faster than the 1.6 percent increase in July. Economists expected the rate of inflation to rise to 2.6 percent.
On a monthly basis, the PPI rose 0.9 percent compared to 0.3 percent increase recorded in July. This was forecast to rise 0.6 percent.
Sentiment also got a lift after U.K. data, which showed that the seasonally adjusted purchasing managers' index (PMI) for the construction sector rose to 49.5 in September from 49 in July.
Against the yen, the euro is now trading at an 8-day high of 101.09 with 102.00 seen as the next upside target level. The pair ended Monday's deals at 100.55.
The monetary base in Japan jumped 9.0 percent on year in September, the Bank of Japan said today, standing at 124.326 trillion yen. That follows the 6.5 percent increase in August.
Banknotes in circulation added an annual 2.3 percent, while coins in circulation collected 0.4 percent. Current account balances spiked 27.6 percent on year, including a 30.0 percent surge in reserve balances.
The euro that fell to 1.2882 against the U.S. dollar at 3:15 am ET gained thereafter. The euro-dollar pair is presently worth 1.2916, compared to yesterday's New York session close of 1.2889.
The European single currency is now trading at 0.7998 against the pound and 1.2102 against the franc, up from previous lows of 0.7981 and 1.2092, respectively. The euro closed yesterday's deals at 0.7992 against the pound and 1.2094 against the franc.
House prices in the United Kingdom decreased unexpectedly in September, after rising in the previous month, data released by the Nationwide Building Society showed.
The seasonally adjusted house price index dropped 0.4 percent month-on-month in September, reversing the previous month's 1.1 percent increase, which was revised down from 1.3 percent.
There are no major economic reports due in the New York session.
