Currencies are likely to be "subdued" this week ahead of the release of data from Japan and Germany, an expert has claimed.

This morning, the dollar was down 0.3 per cent at 118.40 yen, while the euro fell to 160.80 yen. The European currency was little changed against the dollar at $1.3585 while the pound achieved $2.004 and €1.473.

"Currencies should be subdued before the data this week," forex trader at Shinkin Central Bank, Hiroshi Yoshida, told Reuters.

Japan is set to release data on Friday highlighting changes in consumer prices and the job market, while Germany is due to issue the results of a business sentiment survey later this week, which could have a bearing on the foreign currency exchange rates.

"Currencies of countries that are expected to raise rates further will continue to climb," said Takashi Kido, forex manager at Sumitomo Trust and Banking.

Traders are currently waiting for the results of various US reports on housing and economic growth in a bid to gauge whether the Federal Reserve will be among the bodies planning to cut interest rates. The data is to be released this week.