During early deals on Monday, the US dollar slipped to a 4-day low against the European majors. But the buck advanced against the yen, due to across the board weakening of the latter.
The dollar and the yen weakened against its key counterparts today as the major markets across the Asia-Pacific region, ended in positive territory on expectations of a recovery in global economy in the near term. The dollar and the yen are viewed as safe-haven currencies and tend to attract buying when worries about the global economy and financial markets flare up, but come under pressure when such concerns recede.
The markets in Australia, New Zealand, Hong Kong and Malaysia are closed for Easter Holiday. Markets across Europe are also closed on the eve of Easter festival.
Today no major economic reports are scheduled for release from the US. On Friday, the markets in the U.S. and Europe were closed on account of Good Friday.
The dollar traded lower in Monday's early trading versus the euro and fell to a 4-day low of 1.3218. If the dollar drops further, 1.33 is seen as the next likely target level. The euro-dollar pair closed Thursday's deals at 1.3170.
The US currency weakened to a 4-day low of 1.4747 against the pound during Monday's early trading, compared to 1.1563 hit late Thursday in New York. On the downside, the next likely target for the US dollar is seen around the 1.149 level.
Against the currency of Switzerland, the US dollar slipped to a 4-day low during Monday's early trading. The dollar-franc pair edged down to 1.1510 by about 4:20 am ET. If the greenback slides further, 1.143 is seen as the next upside target level. At Thursday's New York session close, the pair was quoted at 1.3183.
At the same time, the dollar climbed versus the yen due to across the board declining of the latter. As a result, the dollar rose to a 4-day high of 100.74 against the yen. If the dollar moves up further, it may test resistance around the 101.1 level. The dollar-yen pair was quoted 100.43 at Thursday's New York session close.
On the economic front, a report released by the Bank of Japan showed that Japan's corporate goods prices index or the producer price index fell 0.2% month-over-month in March, in line with the expectations. During February, the index declined 0.5%. Producer prices have been seeing a declining trend since September 2008.
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