The dollar traded near a five-year high against the yen on Thursday, a day after the Federal Reserve announced its long-awaited first cut in its bond-buying program.
Following the Federal Reserve's decision to taper its bond buys, the dollar rose against the euro before reversing, with the euro now higher.
The dollar drifted higher on Tuesday, trading in narrow ranges, as investors continued to adjust positions ahead of this week's key decision on bond-buying by the Fed.
The euro edged higher against the dollar on Monday after two days of losses, lifted by euro zone data showing business activity picked up, while uncertainty over the Federal Reserve's economic stimulus program kept investors wary of the greenback.
The dollar dropped from five-year highs against the yen Friday as investors reduced bets on the greenback amid caution ahead of a U.S. Federal Reserve policy meeting next week that may herald a wind-down of its massive stimulus measures.
The dollar firmed across the board on Thursday, helped by an upbeat U.S retail sales report that suggested the recovery of the world's largest economy is on a stable footing.
The euro rose for a seventh straight session against the dollar on Wednesday, driven by a combination of higher money market rates and a growing belief that the European Central Bank will keep interest rates low for some time but not cut them.
The euro stayed well-bid on Tuesday, scaling a fresh five-year high on the yen and a six-week peak against the dollar as expectations for further stimulus from the European Central Bank continued to fade.
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The euro raced to a near six-week high against the dollar and scaled a fresh five-year peak versus the yen on Monday after strong U.S. payrolls data boosted risk appetite.
The dollar rallied against the yen after stronger-than-expected jobs data stoked expectations the Fed may start reducing bond buying sooner than expected.
Michael Sneyd, FX analyst at BNP Paribas, says the dollar is strong against "risky currencies" such as the aussie and Canadian dollar.
The euro rose to a five-week high against the dollar on Thursday after the European Central Bank left a key interest rate unchanged and its president Mario Draghi downplayed deflation risks.
The dollar rose against the yen and the euro on Wednesday.
The yen rose against the dollar and the euro on Tuesday, rebounding from losses as falling stock markets worldwide prompted safe-haven demand for the Japanese currency.
The dollar climbed to a more than six-month high against the yen on Monday on speculation the Bank of Japan may expand its already massive economic stimulus.
The euro traded near a five-year peak against the yen and a one-month high against the dollar.
The yen clawed back lost ground against the euro and dollar in Asia on Thursday after touching fresh lows against both, on track for one of its worst monthly performance this year.
The euro rose near a one-month high against the dollar and a four-year high against the yen.
The dollar dropped broadly on Tuesday, as lower U.S. Treasury debt yields drove investors to trim bullish bets.