- POSTED: 21 May 2014 06:00
The dollar edged higher against the euro while the yen picked up strength against both as the Bank of Japan finished the first day of a two-day policy review.
NEW YORK: The dollar edged higher against the euro on Tuesday while the yen picked up strength against both as the Bank of Japan finished the first day of a two-day policy review.
The euro was at $1.3701, still within the narrow range of the past week on the absence of any strong news to break the pattern.
Investors were keeping an eye on the Bank of Japan (BoJ) monetary policy meeting, set to wrap up Wednesday, although few expect it to launch further monetary easing measures.
"The BoJ is not inclined to change or say anything at the moment, and doesn't really need to, since the dollar, while relatively weaker... is still firmly within a well-established 100 yen to 105 yen zone, which is OK with most exporters," Daisuke Uno, strategist at Sumitomo Mitsui Banking Corp., told Dow Jones Newswires.
Meanwhile the British pound was firmer, rising to $1.6840. Nick Bennenbroek at Wells Fargo Securities said the pound could continue to rack up gains and reach $1.69 after delivering the strongest performance of any of the top 10 traded currencies over the past year.
"We believe the UK currency can sustain its prior advance, but we also view further gains in the pound as increasingly challenging given the shift in currency market positioning," he said.