The dollar fell against the yen Tuesday after the Bank of Japan set a 2 percent inflation target and said it planned to buy bonds next year to keep interest rates low.

The dollar fell to 88.76 Japanese yen in late trading Tuesday from 89.73 yen late Monday.

The dollar was practically unchanged against the euro after German survey reported a sharp rise in investor confidence in January and sales of U.S. homes slipped to 4.94 million last month from 4.99 million in November.

The euro rose to $1.3317 from $1.3316. The British pound rose to $1.5844 from $1.5828.

The dollar fell to 0.9294 Swiss franc from 0.9325 Swiss franc and to 99.26 Canadian cents from 99.31 Canadian cents.