Investing.com - The dollar slipped lower against the yen on Tuesday, but still remained close to last week’s seven year peaks, after Bank of Japan Governor Haruhiko Kuroda voiced concerns over the impact of the weaker yen on the economy.
USD/JPY slid 0.29% to 117.91, off the highs of 118.57 struck overnight.
Speaking Tuesday, Governor Kuroda said recent declines in the yen are positive for exporters but could have a negative impact on households and small businesses due to higher import costs.
He added that the economy is on track to achieve the bank’s 2% inflation target.
The remarks came after Japan’s Finance Minister Taro Aso said Friday that the speed of the yen’s recent decline against the dollar was “too fast.”
Also Tuesday, the minutes of the BoJ’s October meeting showed that some officials opposed plans to expand its asset purchasing stimulus program, saying the move would be perceived financing the government’s fiscal deficit.
The yen was also higher against the euro, with EUR/JPY down 0.43% to 146.51.
The euro gained ground against the yen and the dollar on Monday after data showed that German business sentiment improved this month, snapping six successive months of declines.
The report indicated that the downturn the euro area’s largest economy may have ended and curbed expectations that the European Central Bank may soon embark on quantitative easing measures.
Data on Tuesday confirmed that Germany narrowly avoided a recession in the third quarter, posting economic growth of 0.1%.
The euro was lower against the dollar, with EUR/USD down 0.20% to 1.2415, off Monday’s highs of 1.2443.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was at 88.25, not far from last week’s more than four-year highs of 88.51.