Dollar at 1-month lows vs. euro, 6-month highs vs. yen

The dollar slipped to one-month lows against the euro on Wednesday, but traded up to almost six month highs against the yen in thin trade ahead of the U.S. Thanksgiving holiday on Thursday.

During European morning trade, USD/JPY was up 0.44% to 101.71, just below Monday’s six month peak of 101.91.

The yen remained under heavy selling pressure amid heightened expectations that the Bank of Japan will implement more easing measures next year.

Earlier Wednesday, BoJ board member Sayuri Shirai raised doubts over whether the bank’s target of 2% inflation can be reached by 2015 because of downside risks to growth.

The release of mixed U.S. economic data did little to shift expectations that the Federal Reserve will start to taper its stimulus program at one of its next few meetings.

Data released on Tuesday showed that U.S. consumer confidence unexpectedly fell to seven month low in November, but a separate report showed that the number of building permits issued in the U.S. rose to the highest level in five years in October.

Elsewhere, EUR/USD was up 0.14% to 1.3590, the highest level since October 31.

The euro extended gains after data showed that the forward looking Gfk index of German consumer climate rose to a six year high of 7.4 for December from 7.1 in November.

The pound was also higher against the dollar, with GBP/USD rising 0.11% to 1.6231 ahead of revised data on U.K. third quarter growth later in the session.

The dollar edged lower against the Swiss franc, with USD/CHF dipping 0.08% to trade at 0.9055.

The greenback was little changed against the Australian, New Zealand and Canadian dollars, with AUD/USD slipping 0.10% to 0.9115,NZD/USD edging down 0.01% to 0.8192 and USD/CAD inching up 0.12% to 1.0553.

Data released on Wednesday showed that New Zealand's trade deficit narrowed to NZD168 million last month, the narrowest deficit since 1996, while exports to China rose to a record high.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.02% to 80.62. 

The U.S. was to release reports on durable goods orders and manufacturing activity in the Chicago area later Wednesday, as well as the weekly report on initial jobless claims. The Labor Department report was being released one day early due to the U.S. holiday.