Investing.com - The dollar was lower against the yen on Tuesday, while the euro was steady against the greenback as markets continued to mull over the implications of the European Central Bank’s stimulus measures.
USD/JPY was down 0.29% to 102.22 from 102.51 on Monday.
Demand for the dollar continued to be underpinned after Friday’s nonfarm payrolls report showed that the U.S. economy added jobs for the fourth successive month in May, with employment returning to its pre-recession peak.
EUR/USD dipped 0.05% to 1.3586, holding above the four-month trough of 1.3502 reached last Thursday. The single currency lost 0.4% against the dollar on Monday.
The euro weakened broadly on Monday as euro zone bonds rallied, highlighting the diverging monetary policy stance between the ECB and the Federal Reserve.
The ECB on Thursday cut the main refinancing rate in the euro area to a record low 0.15% and imposed negative deposit rates on commercial lenders, in a bid to stimulate lending to businesses. ECB President Mario Draghi also kept the option of quantitative easing on the table.
Elsewhere, the dollar was little changed against the pound and the Swiss franc, with GBP/USD at 1.6794 and USD/CHF trading at 0.8973.
The Australian and New Zealand dollars pushed higher, with AUD/USD easing up 0.15% to 0.9368 and NZD/USD rising 0.28% to 0.8517.
The commodity linked dollars found support after official data on Tuesday showed that the annual rate of consumer price inflation in China ticked up to a four-month high of 2.5% in May while producer price inflation slowed, easing concerns over the risk of deflation in the world’s second-largest economy.
Meanwhile, USD/CAD edged down 0.06% to 1.0899.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was steady at 80.63.
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