Investing.com - The yen weakened in Asia on Wednesday after fourth quarter gross domestic product data from Japan missed expectations with attention turning to January consumer prices in the US ahead.
USD/JPY changed hands at 107.87, up 0.05%, while AUD/USD traded at 0.7869, up 0.14%. EUR/USD rose 0.04% to 1.2357.
Japan reported provisional fourth quarter GDP at 0.5% on year, compared to a 0.9% gain seen and a 0.1% rise on quarter with a 0.2% increase seen.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.46% to 89.60.
Overnight, the dollar traded lower against a basket of major currencies as sharp rallies in both yen and euro weighed on upside momentum ahead of a crucial consumer inflation report due Wednesday.
The Bank of Japan (BoJ) was poised to start reining in loose monetary policy measures despite expectations that BoJ governor Kuroda – who has repeatedly affirmed the need for accommodative monetary policy – would be reappointed for a second term.
The sharp decline in the dollar comes against somewhat hawkish comments from Cleveland Fed president Loretta Mester who said Tuesday that she expects tax cuts to add to growth, presenting upside risk, while inflation is expected to gradually rise to 2% over next one to two years, creating the need for further Federal Reserve rate hikes in 2018 and 2019.