Dollar rebounds against yen, euro steady

The dollar rebounded from one-month lows against the yen on Wednesday, after posting the largest one-day decline against the Japanese currency since November, while the euro was steady near one-week highs.

USD/JPY was last up 0.27% to 102.10, after falling more than 1% on Tuesday, touching lows of 101.54, the weakest level since March 19.

The yen strengthened across the board on Tuesday after the Bank of Japan indicated that it was unlikely to implement further stimulus measures in the short term at the end of its two-day policy meeting.

BoJ Governor Haruhiko Kuroda said the economy can weather a sales tax increase without further monetary policy measures to offset it. He added that growth and inflation were likely to continue to pick up in the coming months.

Investors were looking ahead to the minutes of the Federal Reserve’s March meeting due out later in the trading day, after last week’s U.S. payrolls report came in slightly below expectations.

Fed Chair Janet Yellen said recently that slack in labor markets showed accommodative policies will still be needed for some time.

Elsewhere, EUR/USD was trading at 1.3796, not far from Tuesday’s one-week highs of 1.3810.

The single currency continued to remain supported as recent comments by senior European Central Bank officials indicated that there is no urgent need for quantitative easing to stave off the threat of deflation in the region.

The pound was trading close to one-month highs against the dollar, with GBP/USD dipping 0.04% to 1.6740.

Sterling showed little reaction after data on Wednesday showed that the U.K. trade deficit narrowed more-than-expected in February, as both imports and experts fell.

The dollar edged higher against the Swiss franc, with USD/CHF inching up 0.08% to 0.8838.

The Australian dollar remained supported close to four-and-half month highs, with AUD/USD up 0.14% to 0.9370. Earlier Wednesday, official data earlier showed that home loans in Australia rose 2.3% in February, beating expectations for a 2% increase.

Meanwhile, NZD/USD was trading near two-and-a-half year highs, edging up 0.08% to 0.8679. USD/CAD edged up 0.11% to 1.0935.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.06% to 79.90, holding just above Tuesday’s three week trough of 79.80.