USDJPY remained below the key 110 yen level after falling below it on Monday. The pair traded around 109.38 yen in Asian trading on Tuesday, having fallen to as low as 109.12 on Monday when it shed nearly one percent.
Hawkish comments from Fed officials overnight such as St. Louis Fed President James Bullard and San Francisco Fed President John Williams have done little to support the dollar against its Japanese counterpart.
EURJPY was little changed at 122.635 yen after sliding 0.8 percent overnight.
Commodity-linked currencies such as the Australian and Canadian dollars were on the back foot, weighed down by a continuing decline in commodities such as crude oil.
Brent crude, the international oil benchmark, was down 0.4 per cent at $48.15 a barrel, while West Texas Intermediate, the US marker, was 0.3 per cent weaker at $47.94. Base metals on the London Metal Exchange also declined on Monday, while gold was 0.1 per cent lower at $1,247.85 in Asia today.
USDCAD rose to a 7-month high on Monday at $1.3173 and consolidated these gains on Tuesday. The main risk event for the Canadian dollar will be the Bank of Canada policy meeting on Wednesday.
The Australian dollar was down 0.2 per cent at $0.7211 before tumbling late in the Asian session when RBA governor Glenn Stevens, speaking in Sydney this morning, defended the central bank’s use of an inflation target.
“I think it’s easily the best monetary policy framework we’ve ever had,” Stevens said of the 2-3 per cent inflation target over the medium-term.
“It has worked well and I think it will keep working well.”