Investing.com - The dollar was little changed near recent lows against the yen and the euro on Monday, as recent soft data continued to cloud the outlook for the U.S. economic recovery.
USD/JPY hit 101.39, the lowest since February 6 and was last up 0.02% to 101.85.
The dollar remained under pressure after data on Friday showed that U.S. manufacturing output unexpectedly fell in January, as inclement winter weather continued to act as a drag on growth.
The poor data did little to alter expectations that the Federal Reserve will continue to gradually roll back its bond-purchasing stimulus program.
The safe haven yen touched session highs earlier after official data on Monday showed that Japan’s gross domestic product expanded 0.3% in the final three months of 2013 and grew 1.0% on a year-over-year basis.
Market expectations had been for quarterly growth of 0.7% and an annual increase of 2.8%.
EUR/USD touched highs of 1.3724, the strongest since January 24 and was last up 0.08% to 1.3703.
Demand for the euro continued to be underpinned as Friday’s better-than-expected euro zone fourth quarter growth data eased concerns that the European Central Bank could tighten monetary policy at its next meeting.
The euro zone economy expanded 0.3% in the three months to December and expanded 0.5% from the same period a year earlier.
Germany’s gross domestic product rose 0.4% in the fourth quarter, ahead of expectations for 0.3% growth, while France avoided falling back into a recession, posting growth of 0.3%.
Elsewhere, GBP/USD hit highs of 1.6823, the strongest level since November 2009, before slipping 0.12% to 1.6722.
Demand for sterling continued to be underpinned after the Bank of England revised up its forecast for growth in 2014 in last week’s quarterly inflation report, and indicated that it may raise rates as soon as next year.
The dollar slid against the Swiss franc, with USD/CHF losing 0.10% to 0.8921.
The Australian dollar was little changed, with AUD/USD inching up 0.02% to 0.9035, while NZD/USD dipped 0.02% to 0.8366.
In New Zealand, data on Monday showed that retail sales rose 0.7% in the final three months of 2013 and were up 1.2% from a year earlier. Market expectations had been for a quarterly gain of 1.2% and an annual increase of 1.6%.
The U.S. dollar was lower against the Canadian dollar, with USD/CAD down 0.22% to 1.0956.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.05% to 80.12.