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The yen fell versus all of its major counterparts on speculation the Bank of Japan will signal this week it will maintain monetary stimulus while policy is being tightened elsewhere.
The euro climbed against the yen for a second day before data this week that may show industrial orders growth in the currency bloc accelerated, bolstering the case for the European Central Bank to increase interest rates further.
Bank of Japan Governor Masaaki Shirakawa said on Monday that sentiment in Japan was worsening due to last month's devastating earthquake and tsunami, and the nuclear safety crisis they triggered in northeast Japan.
The Bank of Japan will hold its benchmark interest rate at a range of between zero and 0.1% at its April 28 meeting. The central bank may cut its forecast for real growth in fiscal 2011 to 0.8% from 1.6% as a result of a record earthquake on March 11.
EUR/USD initially failed to break above $1.4600 and retreated a bit. But later rate printed session high above the figure - at $1.4628. Strong resistance remains at Thursday's high on $1.4650. Support comes at $1.4520 (overnight low).
GBP/USD recovered and printed session high around $1.6550 before retreates to current levels around $1.65515. Rate earlier tested strong support at $1.6500/90 (23.6% Fibo of $1.6160 - $1.6600).
USD/JPY fell to Y81.88 after morning rally to Y82.40. Currently rate holds around Y82.05.
Financial markets in Australia, New Zealand, Hong Kong and London are closed for a public holiday today.
US data starts - at 1400GMT New home sales (March).
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