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FOREX-Dollar firms, on track for weekly gains; G20 meeting in focus

Published 15/04/2016, 10:42 am
© Reuters.  FOREX-Dollar firms, on track for weekly gains; G20 meeting in focus
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* Kuroda calls yen's recent moves "excessive"

* Sterling slips after BOE holds steady as expected

By Lisa Twaronite

TOKYO, April 15 (Reuters) - The dollar rose on Friday, on track for weekly gains as investors awaited a weekend meeting of Group of 20 financial leaders at which currency is likely to be a topic

The dollar index, which tracks the greenback against a basket of rival currencies, added about 0.1 percent to 94.977 .DXY , up about 0.8 percent for the week.

The euro edged down about 0.1 percent to $1.1255 EUR= from a six-month high of $1.1465 touched on Tuesday, set to shed about 1.3 percent for the week.

The dollar also tacked on 0.1 percent against its Japanese counterpart to 109.52 yen JPY= , on track to gain 1.4 percent for the week and moving away from this week's 17-month nadir of 107.63.

Bank of Japan Governor Haruhiko Kuroda said on Thursday in Washington that the yen's "excessive" rises have been corrected somewhat in the past few days. it is the Ministry of Finance, not the central bank, that determines Japan's currency policy, Kuroda's remarks were notable in that it was the first time he described the yen's appreciation as "excessive."

Commenting on a strong earthquake that shook Kumamoto, southern Japan, late on Thursday, Kuroda said the BOJ was working closely with other authorities to avoid any disruption to banking operations. There has been no report of disruption to fund settlement systems so far, he said. spoke in Washington as G20 financial leader gathered, with currency likely to come into focus.

The dollar shrugged off U.S. inflation data overnight that might make the Fed more cautious about interest rate hikes. U.S. consumer prices rose less than expected in March and underlying inflation slowed. The consumer price index gained just 0.1 percent last month, which offset an upbeat labour market report showing a drop in U.S. jobless claims. smaller-than-expected rise in prices last month affirmed Federal Reserve Chair Janet Yellen's recent warnings about the pace of U.S. growth and inflation. After their March meeting, Fed policy makers on average halved their outlook on the number of rate increases this year to two from four.

Sterling edged down 0.1 percent to $1.4136 GBP=D4 , moving away back toward its overnight low of $1.4091 plumbed after Bank of England policymakers voted unanimously to keep interest rates at a record low of 0.5 percent. by Shri Navaratnam)

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