Investing.com - The euro was almost unchanged against the dollar in sluggish trade on Tuesday as expectations for easing by the European Central Bank continued to weigh and investors looked ahead to Wednesday’s Federal Reserve minutes.
EUR/USD dipped 0.04% to 1.3702, not far from the two-and-a-half month lows of 1.3647 reached late last week.
The pair was likely to find support at 1.3647 and resistance at 1.3733.
The euro has weakened broadly in the past two weeks, losing more than 1% against the dollar on the back of mounting expectations that the ECB will ease monetary policy at its upcoming June meeting to safeguard the recovery in the euro zone and stop inflation from falling too low.
Recent comments by ECB officials have indicated that the bank is open to easing and is prepared to act swiftly if necessary.
Data late last week showing that the euro zone economy grew at a slower than expected rate in the first three months of the year added to pressure on the ECB to act.
Meanwhile, investors were turning their attention to the minutes from the Fed’s latest monetary policy meeting on Wednesday, as they awaited insight on the central bank''s view of the economy.
Recent U.S. economic reports indicating that the recovery remains uneven have weighed on U.S. Treasury yields, pressuring the dollar.
The euro was close to more than three month lows against the yen on Tuesday, with EUR/JPY down 0.27% to 138.75, near the lows of 138.60 struck in the previous session, the weakest since February 7.
Demand for the yen continued to be supported by expectations that the Bank of Japan will refrain from further stimulus measures in the near term.
The BoJ was widely expected to keep monetary policy unchanged at the conclusion of its two-day meeting on Wednesday, after recent comments by Governor Haruhiko Kuroda indicated that the bank’s assessment of the economy remains upbeat.
Elsewhere Thursday, USD/JPY was at 101.26, not far from Monday’s three-and-a-half month trough of 101.09.