Investing.com - The dollar slid to one-week lows against the yen on Thursday as falling U.S. Treasury yields pressured the dollar lower and investors awaited updated first quarter growth figures from the U.S. later in the session.
USD/JPY touched lows of 101.47, the weakest since May 22 and was last down 0.27% to 101.57.
The pair was likely to find support at 101.34 and resistance at 102.02, Wednesday’s high.
The yield on U.S. 10-year Treasury notes fell to 2.42% on Thursday, the lowest since July 2013, amid ongoing uncertainty over the outlook for the global economic recovery. The dollar-yen pair is very sensitive to fluctuations in U.S. treasury yields.
Revised data on U.S. gross domestic product scheduled for release later Thursday was expected to show that the economy contracted 0.5% in the first three months of the year, after the preliminary estimate showed growth of just 0.1%.
Elsewhere Thursday, the euro fell to almost four month lows against the yen, with EUR/JPY hitting lows of 137.96, the weakest since February 6.
The euro remained under pressure amid mounting expectations that the European Central Bank will ease monetary policy at its upcoming meeting next week, in order to safeguard the fragile recovery in the euro area.
Reports on Wednesday showing an unexpected increase in unemployment in Germany this month and a decline in bank lending to euro zone businesses in April fuelled expectations for action by the central bank.
The dollar slipped lower against the euro, with EUR/USD easing up 0.15% to 1.3612, not far from the three month trough of 1.3587 struck on Wednesday.
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