Gaffney thinks the massive repatriation of the Japanese yen that drove the currency higher after the earthquake and tsunami seems to be over.
The U.S. dollar was flat against the a basket of major currencies Tuesday following the release of dampening lackluster economic data.
The S&P Case-Shiller 20-city home price index showed a slightly milder-than-expected decrease of 3.1% in January, after a decline of 2.43% in December.
, economists were expecting a drop of 3.5% in January. The Conference Board said consumer confidence fell to a reading of 63.4 in March, which was lower than the reading of 65 that economists had been expecting, and far weaker than February's level of 72.
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Nevertheless, like its peers, the dollar firmed against the yen Tuesday.
"Overall, though, the dollar has continued to firm against the yen as the relative spreads between the U.S. and Japanese 2- and 10-year [bond] has moved in the dollar's favor since bottoming out in mid-March," said financial services firm Brown Brothers Harriman in a research report.
The U.S. dollar index was trading sideways at $76.28, while the dollar was gaining 0.9% against the yen at $82.419. The
CurrencyShares Japanese Yen Trust
was down 0.9% at $119.84.
PowerShares DB US Dollar Index Bearish
was down 0.1% to $28.02 and
PowerShares DB US Dollar Index Bullish
was flat at $21.88.
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Written by Andrea Tse in New York.
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