The USD/JPY pair fell 0.51% to 108.72, moving below Tuesday’s highs of 109.36. The dollar edged higher against the yen in the previous two sessions, after the Japanese Minister said on Monday that the officials are ready to intervene if excessive moves on the yen are strong enough to affect the economy.
The single currency was also lower against the yen, with EUR/JPY dropping 0.41% to 123.76, falling from Tuesday’s one-and-a-half week peaks of 124.43. The euro edged higher against the greenback, with EUR/USD up 0.17% to 1.1390.
The Aussie and Kiwi dollars strengthened against the greenback, but gains were expected to remain limited due to lower oil prices. The American Petroleum Institute reported on Tuesday that U.S. crude oil inventories increased by 3.45 million barrels to a record 543.1 million barrels in the previous week.
The AUD/USD pair rose 0.11% to 0.7371, hovering near the previous session’s two-month low of 0.7300, while NZD/USD jumped 0.645% to 0.6806. In the meantime, the Reserve Bank of New Zealand in its financial stability report said that the outlook for the global economy has deteriorated and that the RBNZ is observing developments in order to assess whether further measures are needed.
The U.S. dollar index was last down 0.17% to 94.06.
Overnight, the euro ticked up against the dollar, with EUR/USD easing up to 1.1394. In the eurozone, a report on Tuesday showed that German industrial output fell more than expected in March, but exports increased considerably. German industrial production declined by 1.3% in March, marking the largest monthly fall since August 2014. Another report indicated that Germany’s exports decreased by 2.3%, widening the trade surplus to €23.6 billion.
Later today, the U.K. is due to release a report on industrial production, expected to rise to 0.5% from 0.3% in the previous month, and a manufacturing production report, seen rising 0.3%, as opposed to a 1.1% decline in the month before. The U.S. is also set to release data on crude oil inventories and Cushing crude oil inventories.