IV:Dollar turns lower vs. euro, yen steady after G7, Jordan
Investing.com - The dollar turned lower against the euro and was steady against the yen on Tuesday following remarks by Swiss National Bank Chairman Thomas Jordan and a statement on exchange rates by the G7.
During European late morning trade, the greenback turned lower against the euro, with EUR/USD rising 0.38% to 1.3453.
Market sentiment was boosted after SNB head Thomas Jordan defended actions by the Bank of Japan to defeat inflation and said that global central banks are not engaged in a currency war.
The remarks came after a statement on exchange rates by the G7 made no overt reference to the sharp decline in the yen that has taken place this year.
The G7 reaffirmed its commitment to market determined exchange rates, saying that countries will not target exchange rates and warned that excessive volatility can have “adverse implications” for economic and financial stability.
The statement came ahead of G20 meeting starting Friday, which is likely to feature discussions on competitive currency devaluations.
On Monday, a U.S. Treasury official said the U.S. supported efforts to reinvigorate growth and end deflation in Japan.
Japanese Finance Minister Taro Aso said Tuesday that Japan would tell the G20 that it intends to maintain monetary and economic policies aimed at beating deflation.
The greenback was steady near two-and-a-half year highs against the yen, with USD/JPY dipping 0.13% to 94.20.
Elsewhere, the greenback was trading within striking distance of six-month highs against the pound, with GBP/USD down 0.35% to 1.5601.
In the U.K., official data showed that consumer price inflation remained unchanged at 2.7% for the fourth consecutive month in January, slightly better than forecasts for a rise to 2.8%.
Elsewhere, the greenback was lower against the Swiss franc, with USD/CHF falling 0.39% to 0.9166.
The Swiss franc was little changed earlier after official data showed that consumer price inflation in Switzerland fell 0.3% compared to the same month last year in January and was also 0.3% lower from the previous month.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.23% to 1.0070, AUD/USD inching down 0.08% to 1.0246 and NZD/USD dipping 0.01% to 0.8348.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.12% to 80.29.
European Central Bank President Mario Draghi was to speak in the Spanish Parliament in Madrid later in the session, while the European Economic and Financial Affairs Council was to hold talks in Brussels.
Market participants were also awaiting U.S. President Barack Obama's State of the Union speech later Tuesday for any indications of an agreement to avert automatic tax hikes and spending cuts due to take effect on March 1.
