The dollar approached the psychologically important level of 150 Japanese yen on Tuesday, and was broadly stable ahead of a key US inflation reading released later today, while the cryptocurrency Bitcoin hovered around the $50,000 level for the second day in a row.
Trading was largely weak in early trading in Asia, with markets in China and Hong Kong still closed for the Lunar New Year holiday, while traders braced for the release of US consumer price data in the world's largest economy on Tuesday.
The price of the dollar in the latest trading reached 149.39 yen and rose further towards the closely watched 150 level, which analysts said would likely lead to more statements by Japanese officials aimed at supporting the currency.
The yen, which has already fallen by more than five percent against the dollar since the beginning of the year, is under constant pressure as investors' expectations regarding the size and pace of the US Federal Reserve's monetary easing cycle decline.
Those betting on the yen's decline were also emboldened by indications that the Bank of Japan will strongly resist raising interest rates even if it ends its negative interest rate policy this year, as markets are betting on.
As for the euro, it fell 0.03 percent to $1.0768, while the British pound fell 0.07 percent to $1.2620.
The Australian dollar also fell 0.08 percent to $0.6526.
All eyes are on the US January inflation report, which is scheduled to be released later today. It is likely to provide more clarity about when and how likely the US central bank will cut interest rates this year.
A batch of strong US economic data, especially the jobs report released earlier in the month, has increased expectations that interest rates will remain high for longer.
Against a basket of currencies, the dollar rose 0.02 percent to 104.16. The New Zealand dollar fell 0.11 percent to $0.6121.
As for cryptocurrencies, Bitcoin rose 0.64 percent to $50,155, after it exceeded the $50,000 level for the first time in more than two years yesterday, Monday.
The world's largest cryptocurrency has risen nearly 18 percent this year, supported by regulatory approval issued last month for US-listed exchange-traded funds designed to track the price of the digital currency.
