On Monday the yen strengthened, as Japan's December trade balance showed a deficit of ¥660.7 billion, - narrower than the deficit of ¥740 billion yen expected, and narrower than the ¥829 billion deficit seen in November.
The Bank of Japan's minutes on monetary policy showed its focus on
inflation is with expectations from consumers are key for policy going
forward.
The greenback remained broadly supported, as the diverging monetary policy stance between the Federal Reserve and central banks in Europe and Japan boosted the US currency. The Bank of Japan held off on expanding its monetary easing scheme on Wednesday and instead expanded a loan scheme aimed at boosting lending.
EUR/USD touched lows of 1.1099, the lowest level since September 2003, before pulling back to 1.1204, almost unchanged for the day.
The U.S. dollar index was steady at 95.35, not far from Friday’s more than 11-year highs of 95.77.
Investors remained cautious as Syriza's victory sparked concerns over Greece's future in the euro zone.
Alexis Tsipras, the party leader, has pledged to renegotiate the terms of Greece's €240 billion bailout and reverse many of the austerity measures imposed by the European Union and International Monetary Fund.
