Investing.com - The dollar firmed up against the yen on Wednesday after falling in the previous session in the wake of a disappointing reading on U.S. consumer sentiment, which fuelled concerns over the outlook for first quarter growth.
USD/JPY edged up 0.07% to 102.30, recovering slightly from Tuesday’s lows of 101.99.
The Conference Board reported Tuesday that its U.S. consumer confidence index declined to 78.1 in February, from a downwardly revised 79.4 last month, amid concerns over the short-term outlook for business conditions, jobs, and earnings.
A recent series of weak U.S. economic indicators have sparked concerns that the recovery has lost momentum since the end of last year.
The yen continued to remain supported amid concerns over the outlook for growth in China.
China’s yuan fell sharply on Tuesday, adding to losses in recent weeks, amid speculation that the country’s central bank had intervened to add volatility to the currency ahead of possible economic reforms.
The euro was little changed against the dollar, with EUR/USD inching up 0.04% to 1.3749.
Sentiment on the common currency remained subdued amid concerns that Ukraine could default on its loans, if an aid package can’t be agreed. Russia''s deputy finance minister said earlier this week that Moscow was under no legal obligation to give Ukraine the remainder of a $15 billion bailout package it negotiated in December.
Elsewhere, GBP/USD edged up 0.08% to 1.6695, ahead of revised data on U.K. fourth quarter growth due out later in the session. The data was expected to confirm that the U.K. economy grew 0.7% in the last three months of 2013.
USD/CHF ticked up 0.03% to 0.8870.
The Australian dollar was lower, with AUD/USD dipping 0.09% to trade at 0.9012, while NZD/USD edged up 0.07% to 0.8336.
The U.S. dollar was steady against the Canadian dollar, with USD/CAD dipping 0.02% to 1.1081.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.05% to 80.14.
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