Dollar gains ground vs. yen, euro

The dollar re-approached the psychologically important 100 per yen level on Monday after the Group of 20 nations indicated that they approved of Japan’s aggressive monetary easing policies.

During European morning trade, the dollar was hovering close to four-year highs against the yen, with USD/JPY rising 0.23% to 99.75.

The yen resumed its weakening trend after the G-20 said Japan's recent policy actions are aimed at beating deflation and not at competitively weakening the yen.

Japan’s Finance Minister Taro Aso said the Bank of Japan’s unprecedented easing has resulted in a weaker yen, but only as a by-product of measures to end deflation and spur growth.

The dollar hit session highs against the euro, with EUR/USD sliding 0.11% to 1.3034.

The euro weakened after European Central Bank Vice-President Vitor Constancio said a rate cut is always a possibility and is dependent on economic data.

The euro had found support earlier after Italy re-elected President Giorgio Napolitano on Saturday, an important development as the country attempts to break an ongoing political deadlock.

The dollar was little changed against the pound and the Swiss franc, withGBP/USD inching up 0.06% to 1.5237 and USD/CHF edging up 0.05% to 0.9343.

The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.21% to 1.0255, NZD/USDdipping 0.02% to 0.8414 and USD/CAD inching down 0.02% to 1.0264.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.08% to 82.95. 

The euro zone was to release a report on consumer confidence later Monday, while the U.S. was to release private sector data on existing home sales.

-->