The U.S. dollar widened its gains versus the Japanese yen on Tuesday after the release of U.S. economic data showing consumer spending remained firm for a fourth straight month.
U.S. personal spending surged 0.4 percent last month from an upwardly revised of 0.5 percent increase in May, matching analysts’ projections.
Core PCE Price Index, on the other hand, rose just 0.1 percent on the month, slowing from 0.2 percent in May, but the moderate rise in inflation gave an impetus to consumer spending last month.
The dollar index erased its earlier losses as it rebounded from a low of 93.93 to trade higher at 94.14, yet it is still close to the session’s open at 94.08.
Against the yen, the dollar tightened its grip as it climbed to a one-week high of 111.89 (+0.70%), poised to record its biggest daily gain in nearly three weeks on Tuesday.
The yen dipped earlier against major currencies after the Bank of Japan pledged to maintain its short-term interest rate target at minus 0.1 percent and decided to guide 10-year JGB yields around zero percent.
The undergoing monetary stance by the BOJ supports sticking to massive policy stimulus, which negatively affected the yen’s movements.
Data released from Japan today, unemployment rate and industrial production both missed analysts’ forecasts.
consumer confidence, due as of 14:00 GMT, may signal improvement to 126.5 in
July from 126.4 in June.