Investing.com - The dollar slid lower against the yen on Tuesday, as investors began to turn their attention to the outcome of the Federal Reserve’s policy meeting on Wednesday after U.S. data on Monday indicated that the economic recovery remains sluggish.
USD/JPY touched session lows of 101.54, and was last down 0.18% to 101.58.
The pair was likely to find support at 101.19, last Friday’s low and a five-week low and resistance at 101.93, the session high.
On Monday, the New York Federal Reserve reported that its Empire State manufacturing index rose to 5.61 in March from 4.48 in February. Analysts had expected a reading of 6.0.
A separate report showed that U.S. industrial production rose more strongly than expected in February, recovering from a sharp drop in January.
Investors were looking ahead to U.S. data on inflation and housing later in the session for further indications on the strength of the recovery.
The dollar moved higher against the yen on Monday as tensions over the Ukraine crisis eased, as sanctions imposed on Russia by the U.S. and the European Union were seen as mild. Russian President Vladimir Putin was to give a speech later Tuesday, following Sunday''s referendum in Crimea, which saw a majority of voters chose to join Russia.
The dollar was steady against the yen, with EUR/USD dipping 0.04% to 1.3916, holding just below last week’s two-and-a-half year peaks of 1.3966.
Elsewhere, the euro was lower against the yen, with EUR/JPY sliding 0.15% to 141.44.
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