Yen fell and dollar rose ahead of the release of inflation data

The yen fell on Tuesday after achieving its largest single-day rise since mid-July on Monday after the Governor of the Bank of Japan indicated a possible end to the negative interest rate policy, which was widely echoed in all markets.

Meanwhile, the dollar recovered some of its losses after recording its largest daily decline since July 13 on Monday, while the pound sterling fell on the back of mixed data on the labor market.

Bank of Japan Governor Kazuo Ueda said in a press interview earlier this week that the bank may obtain enough data by the end of the year to determine whether it can end negative interest rates.

These statements caused the yen to achieve its largest daily gain against the dollar on Monday since July 12.

The Japanese currency fell in recent trading by 0.1 percent to $146.71, after rising to the highest level in a week at 145.91 in the previous session.

The yen is under tremendous pressure against the dollar as a result of the increasing interest rate differentials with the United States since the Federal Reserve began a cycle of sharply raising interest rates last year, while the Japanese central bank has stuck to its very easy monetary policies.

The dollar recovered some of its losses incurred in the previous session, while the euro fell 0.3 percent to $1.0718 after touching the highest level in a week at $1.0771 before an expected announcement from the European Central Bank regarding interest rates on Thursday.

The pound sterling fell after the release of a labor market report, the data of which was mixed and showed more signs of slowing in the three months to July, but wage growth continued to rise at a rapid pace, exceeding the inflation rate.

The pound sterling fell in recent trading by 0.2 percent against the dollar to $1.2479, and there was no significant change against the euro.

The dollar index rose 0.2 percent to 104.76, after falling 0.46 percent in the previous session, the largest daily decline since July 13.

The Australian dollar rose marginally in recent trading at $0.6436, while the New Zealand dollar fell 0.1 percent to $0.5915.