Forex Market Update

Monetary-policy expectations were the dominant drivers of the foreign-exchange market Tuesday, as traders sold euros, yen and Canadian dollars and bought the greenback ahead of central-bank meetings in Canada, Japan and Europe later in the week.

Currency traders were unfazed by stronger-than-expected growth in gross domestic product out of China and resurgent Japanese stocks. The dollar USDJPY, -0.85%  traded at ¥118.7710 in recent trade, its highest level against the yen in a week, down from ¥117.81 Monday afternoon.

The U.S. dollar USDCAD, -0.25%  traded as high as 1.2115 Canadian dollars, compared with 1.20 Canadian Monday.

The euro EURUSD, +0.15%  traded at $1.1554, compared with $1.16 Monday afternoon. It hit an 11-year low around $1.1480 Monday.