The dollar eased against the Japanese yen after data revealed that Japan’s core consumer inflation exceeded forecasts, while U.S. durable goods orders fell more than expected in January.
Japan’s inflation data kept alive some expectations that the Bank of Japan might end negative interest rates by April. On the other hand, the U.S. Commerce Department reported a 6.1% drop in durable goods orders for January, surpassing the expected decline of 4.5%.
Against the yen, the dollar dipped 0.1% to 150.56, while the U.S. dollar index, measuring the currency against a basket of peers, was up 0.08% at 103.86.
Analysts noted that Japan’s inflation numbers suggested that inflation is sticky even in Japan, leading to expectations of mild rate increases in the next few months.
Bitcoin hit a two-year high on signs of large players buying the cryptocurrency. Bitcoin was up 5.22% at $57,513, while ether rose 2.26% at $3,258.
In the U.S., the consumer confidence index slipped to 106.7 this month, falling short of forecasts. The U.S. core personal consumption expenditures (PCE) price index, scheduled for Thursday, is anticipated to be an important report for the market.
The euro was down 0.1% versus the greenback, strengthening since mid-February, with markets scaling back bets on future European Central Bank rate cuts.
The dollar strengthened 0.06% against the offshore Chinese yuan. The kiwi weakened 0.06% versus the greenback ahead of the Reserve Bank of New Zealand’s policy meeting, with markets pricing in a one-in-three chance of a rate hike to combat inflation.