The U.S. dollar on Wednesday lost value in advance of economic data that is projected to indicate how the U.S. Federal Reserve will move forward with its economy-spurring monetary easing policies, Bloomberg reports.
Retail sales data about May is slated to be released on Thursday and economists polled by the news service estimated the metric will increase 0.4 percent as compared to the month prior. The Dollar Index, which measures the strength of the dollar against six counterpart monetary units, dropped near its lowest level in 120 days. Growth and development in the U.S. prompts speculation to mount about the nation preparing to cut off stimulus measures.
The central bank of Japan stopped short of augmenting its stimulus measures following two days of policy meetings that adjourned on Tuesday. The Japanese yen has lost 7.4 percent of its value thus far this year against the U.S. dollar.
"There was no real catalyst in this latest leg lower in dollar/yen," one trader told Reuters on Wednesday. "The move is largely driven by stops in a low liquidity environment."
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