Investing.com – The Japanese yen was slightly weaker after the Bank of Japan board Tuesday decided by a unanimous vote to leave the bank’s policy target unchanged as expected at its two-day monthly meeting
USD/JPY traded at 101.58, up 0.03%, after the release.
The BoJ trimmed its growth forecast to 1.0% for the current financial year ending in March, compared with the previous forecast of a 1.1% expansion.
Meanwhile, AUD/USD traded at 0.9371, down 0.22%, after the release of July board meeting minutes by the Reserve Bank of Australia that focused on the strong exchange rate.
“The exchange rate remained high by historical standards, particularly given the declines in key commodity prices, and was therefore offering less assistance than it otherwise might in achieving balanced growth in the economy,” the RBA said in the minutes posted on its Website.
Overnight, the dollar held steady against most major currencies on as investors stood on the sidelines before Federal Reserve Chairwoman Janet Yellen testifies before Congress on Tuesday and Wednesday.
In the minutes of the Federal Reserve’s June policy meeting released last week, the U.S. central bank predicted an October close to its bond-buying stimulus program but did not hint at a timetable as to when interest rates may begin to rise afterwards.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 80.28.
On Tuesday in addition to Yellen, the U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is also to release data on import prices, business inventories and manufacturing activity in New York state.