The dollar could take its cues over the next few days from data including U.S. initial jobless claims and pending home sales tomorrow and Japanese inflation and USA first quarter GDP figures on Friday. The euro was up 0.15 percent higher at $1.1152, recovering from a 10-week low of $1.1133 struck on Tuesday.
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A man looks at an electronic board showing the graphs of the recent fluctuations of the exchange rate between Japanese yen against the U.S. dollar (right) and the graphs of the Japan’s Nikkei average outside a brokerage in Tokyo February 29, 2016.
While Japanese officials have publicly railed against the yen’s rapid appreciation to 18-month highs earlier this month, some economic policymakers have told Reuters they are not so anxious that the yen will derail efforts to revive exports and the economy.
The yen zoomed in early trade on Thursday in anticipation of a possible sales tax hike in Japan and the upcoming decision by Federal Reserve chief Janet Yellen about an interest rate hike in the U.S.
The dollar index remains about 0.7 percent higher since the release of the Fed minutes.
Japanese Finance Minister Taro Aso had said on Wednesday that he told his G7 counterparts at a finance leaders’ meeting last week that Japan will raise the tax as planned.
But he did not say whether that meant Japan had officially pledged to the worldwide community that it would go ahead with the increase.
In addition to talk of currency intervention, investors have been eager for any developments about the timing of Japan’s sales tax increase.
An expert panel formed in February is negotiating with automakers on cost claims, Takata said in a statement released during USA trade, according to Bloomberg News.
The U.S. dollar index, which measures the greenback against a basket of six major rivals, hit 94.938, its lowest level in eight days.DXY. Hawkish comments from Fed officials on Monday and some strong US economic data have fanned expectations for a potential June or July rate hike.
The Australian dollar rose to an 8-day high of 1.0735 against the NZ dollar, from an early low of 1.0656.
Fed funds futures contracts on Thursday implied traders saw a 26 percent chance the USA central bank would raise rates in June, down from 32 percent on Wednesday.
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