Asian session: dollar remains under pressure

The euro touched a three-month high against the dollar on speculation European Central Bank policy makers meeting tomorrow will say they are concerned about quickening inflation.
European producer prices rose 5.2% in December from a year earlier, according to survey before today’s report. Inflation in the euro region accelerated to a 2.4% annual rate in January, the statistics office said in a preliminary estimate on Jan. 31.
“A very hawkish ECB is priced in at this point and U.S. dollar sentiment has certainly waned,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “There’s enough confidence in the general risk-on move that it’s undermining the U.S. dollar safe-haven role.”
The yen fell against all its major counterparts as a gain in Asian stocks and signs global growth is accelerating cut demand for the safety of Japan’s currency.
The yen dropped for a third day versus the euro before a European report that economists said will show producer-price inflation accelerated in the region to the fastest since 2008.
Pound rose as BOE Dep Gov Bean said BOE would have to hike rates if the recent spike in oil prices persisted and the MPC concluded inflation was becoming embedded.