TOKYO- The dollar slipped in Asia on Tuesday after ratcheting up big gains against the yen this month, while investors look ahead to the release next week of Japanese third-quarter economic growth data.
In Tokyo midday trade, the greenback slipped to 114.71 yen, from 114.83 yen in New York, although it is still well still up from the 114.16 yen in Tokyo earlier Monday.
The euro firmed to $1.2435 from $1.2420, and to 142.72 yen from 142.62 yen in US trade.
“After six breath-taking sessions, sandwiched between the Bank of Japan’s surprise easing and the US labour market reports, one can’t blame investors for wanting a bit of a break,” National Australia Bank said in a note after Monday’s quiet session.
The greenback has surged against the yen since the BoJ on October 31 said it would expand its already huge stimulus programme, which effectively prints more cash. The dollar bought 109.20 yen before the BoJ move.
The US unit eased Friday after a US jobs report that, although healthy, came in below expectations.
However, it picked up again Monday on renewed bets that the US economy will continue to strengthen faster than other major economies.
Focus has now shifted to whether Tokyo will hike its sales tax again next year, with press reports saying a planned increase may be put off as consumer spending remains lacklustre following a rise in April.
Prime Minister Shinzo Abe may call snap elections in December, seeking a renewed mandate if he decides to put off the second tax hike, reports said.
Abe has said he will make a decision after seeing fresh economic data, most notably July-September gross domestic product data due out Monday.
Japan’s GDP shrank 1.8 percent in April-June, or a 7.1 percent contraction at an annualised rate, the worst showing since the 2011 quake-tsunami disaster.