The dollar neared a six-year high against the yen as investors considered the timing for the Federal Reserve's first interest-rate increase since 2006. This was prior to the beginning of a two-day meeting between policy makers today. In Tokyo the dollar was little changed at 107.14 yen after reaching the most since Sept. 2008 at 107.39. It was at $1.2938 per euro after gaining 0.2 percent to $1.2940 yesterday. The euro traded lower 0.1 percent to 138.60 yen, reports Bloomberg.
Data on August's direct investment in China will also be released on Tuesday, which had declined 16.95 percent year on year. July's significant decline took this indicator to two-year lows, which is a sign of how foreign investors are souring on China. The chances of this changing are small, as there's not much that's happened since then that hints that it will. However, Chinese official statistics are known for being volatile, making a recovery possible nonetheless, according to The Wall Street Journal.
The Bloomberg Dollar Spot Index was little changed at 1,050.52 after climbing to its highest level since July 2013 at 1,052.14 yesterday. This month's reports showed manufacturing and service growth in the U.S. grew in August, while the trade deficit narrowed in July, reports Bloomberg.
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