Yen Drops To 1-week Low Against Dollar
Thursday in Asia, the yen showed weakness against other major currencies as a gain in Tokyo stocks reduced demand for the safe-haven Japanese currency.
At 11:34 pm ET, Japan’s benchmark Nikkei 225 index was up 106.22 points or 1% at 10,843.74.
The yen fell to a 1-week low of 91.67 against the U.S. dollar in early Asian deals on Thursday. On the downside, 92.1 is seen as the next target level for the Japanese currency. At yesterday’s close, the dollar-yen pair was quoted at 91.28.
After the release of China’s gross domestic product and other economic data, the dollar gained against the yen as market players took the data as confirming the recovery trend of the global economy.
But the dollar’s further rise was capped amid growing concerns that Chinese authorities could tighten their monetary grip, which in turn would slow down global economic recovery.
During early Asian deals on Thursday, the yen slipped to 129.21 against the euro and 87.77 against the franc. The next downside target level for the yen is seen at 130.4 against the euro and 88.4 against the franc. The euro-yen and the franc-yen pairs were worth 128.69 and 87.42, respectively at Wednesday’s close.
The yen that closed yesterday’s trading at 148.70 against the pound declined to 149.09 in early Asian deals on Thursday. If the yen weakens further, it may target the 149.5 level.
Looking ahead, Swiss M3 money supply for December, ZEW report for January, U.K. M4 money supply for December and the ECB monthly report are expected in the upcoming European session.
Across the Atlantic, the U.S. weekly jobless claims for the week ended January 16, leading index for December and the results of the Philadelphia Federal Reserve’s manufacturing survey for January have been slated for release.
