The Bank of Japan eased monetary policy, as expected, and the yen gained slightly. [CNBC]

An apparent new impasse in the 'fiscal cliff' negotiations could propedl the dollar higher as investors turn more cautious. []

The prospect of less debt issuance from Germany in 2013 sent the euro slightly higher in European trading. []

With central banks apparently competing to stimulate their economies, investment banks are more divided than usual on their currency forecasts for the coming year. [WSJ]

Latvia is on track to join the euro in 2014, the prime minister says, though the Latvian public is increasingly skeptical. [WSJ]