Forex – Dollar Hovering Near 1-Week Low versus Yen

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© Reuters.  Dollar hovering near 1-week low versus yen© Reuters. Dollar hovering near 1-week low versus yen

Investing.com – The dollar was hovering near a one-week low against the yen on Tuesday as investors remained cautious after investigators probing Russian interference in the U.S. election charged President Donald Trump’s former campaign manager.

USD/JPY was at 113.07 by 04:39 AM ET (08:39 AM GMT) after falling as low as 112.96 overnight.

The dollar came under pressure after former Trump campaign manager Paul Manafort was charged with money laundering by federal investigators.

Special Counsel Robert Mueller has also been investigating whether Trump obstructed justice in his firing of FBI Director James Comey.

Investors fear that the charges may divert Trump’s attention from his legislative agenda, which includes tax reforms.

Investors were looking ahead to the Federal Reserve’s latest monetary policy statement on Wednesday for fresh indications on the path of rate hikes this year and Friday’s U.S. jobs report for October.

Trump is also expected to name his pick for the next head of the U.S. central bank on Thursday. Recent reports have indicated that Trump is likely to appoint Fed Governor Jerome Powell, who is viewed as more dovish than other candidates.

The yen showed little reaction after the Bank of Japan kept monetary policy on hold on Tuesday in a widely anticipated decision.

The euro was a touch lower, with EUR/USD at 1.1643 ahead of reports on euro zone third quarter growth as well as unemployment and inflation later in the trading day.

Economists expect growth in the euro area to have slowed slightly to 0.5% from 0.6% in the second quarter.

Sterling was steady, with GBP/USD at 1.3213 after rising 0.6% on Monday amid expectations that the Bank of England will raise interest rates for the first time in almost a decade on Thursday.

The Australian dollar was slightly lower, with AUD/USD slipping to 0.7678 after data overnight showing that Chinese factory growth slowed more than expected in October. China is Australia’s largest trading partner.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 94.41.

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