Investing.com - The dollar gained on the yen in Asia on Monday after trade data from Japan that surprised on exports.
Japan reported trade data for January with a deficit of ¥943 billion, narrower than the ¥1.0 trillion seen. Exports jumped 12.2%, beating the 10.3% gain expected and imports rose 7.9%, less than the 8.3% rise seen on year.
Markets in Hong Kong, Taiwan, Vietnam, China, the US and Canada are shut on Monday.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was last quoted at 89.03.
In the week ahead, investors will focus on minutes of the Fed’s latest policy meeting with hopes the central bank will give more hints on the pace of future rate hikes this year.
Last week, the dollar rebounded from three-year lows against a currency basket on Friday but still ended the week lower as a combination of fears over the perceived erosion of its yield advantage and the outlook for the U.S. fiscal deficit weighed.
Expectations for a faster rate of monetary tightening outside the U.S., which would lessen the divergence between the Federal Reserve and other central banks has eroded the dollar’s relative yield attraction for investors.
The greenback has also been hit by concerns that recent tax cuts will negatively impact the U.S. fiscal deficit, which is projected to balloon to near $1 trillion in 2019.
The declines in the dollar came despite expectations for a faster pace of rate hikes by the Fed this year after data on Wednesday showing a stronger-than-expected increase in U.S. inflation in January.
Japan’s top government spokesman Yoshihide Suga said on Friday that recent moves in the currency market were one-sided and that the government would take appropriate measures if needed.
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