The dollar rose against most of its Group-of-10 peers as traders awaited the release of a key inflation gauge that may help shape the outlook for US monetary policy.
USD/JPY climbed from an intraday low of 141.87 on fix-related demand, according to a trader. Most currencies traded in a narrow range heading into the year-end holiday.
Economists predict that annual growth in the core personal consumption expenditures price index, the Federal Reserve's preferred gauge of underlying inflation, slowed to 3.3% in November from 3.5% the previous month.
"Focus today is on core PCE tonight and one should be mindful of the razor-thin liquidity heading into the festive season as data surprise may exacerbate price movement," said Christopher Wong, FX strategist at Oversea-Chinese Banking Corp. "We remain biased to adopt a ‘sell-on-rally' for USD as Fed is done with tightening for current cycle".
The Bloomberg Dollar Spot Index was little changed and has declined 0.5% this week; 10-year US yields climbed one basis point to 3.90%.
USD/JPY advanced 0.2% to 142.40.
Japan's inflation slowed in line with expectations in November while services showed signs that underlying price growth is spreading more widely in the economy.
Source : Bloomberg
