Yen Strengthens To 4-day High Against Euro And Franc
Tuesday morning in Asia, the yen soared to a 4-day high against the euro and the franc as a decline in some Asian stocks boosted demand for the safe-haven Japanese currency.
The yen also advanced against the pound, but showed choppy trading against the dollar.
The Japanese market moved higher in early trades today on the back of positive leads from Wall Street, but drifted lower and fell into the red later with participants choosing to take profits after recent strong gains.
The benchmark Nikkei 225 index, which rose to 9,848.6 in early trades, is currently down 13.76 points or 0.14% at 9,777.42.
An index measuring tertiary industry activity in Japan was down 0.5 percent in September, the Ministry of Economy, Trade and Industry said today, posting a score of 96.4. That was below analyst expectations that had called for a 0.2 percent monthly increase after the 0.3 percent gain in August.
The yen climbed to a 4-day high of 133.11 against the euro and 88.24 against the Swiss franc in early Asian deals on Tuesday. If the Japanese currency advances further, it may target 132.9 against the euro and 88.0 against the franc. The euro-yen and the franc-yen pairs were worth 133.39 and 88.44, respectively at yesterday’s close.
During early Asian trading on Tuesday, the yen rose to 149.62 against the pound. This may be compared to yesterday’s closing value of 149.93. The near term resistance for the Japanese currency is seen at 149.2.
The yen bounced between 88.93 and 89.18 against the dollar in early Asian trading on Tuesday. The next downside and upside target levels for the dollar-yen pair are seen around 88.77 and 89.6, respectively. At yesterday’s close, the pair was quoted at 89.09.
The Swiss September retail sales, U.K. October CPI and retail price index, Euro-zone September trade balance are expected to influence trading in the European session.
From the U.S., a report on on the flows of financial instruments into and out of the U.S. for September, PPI and industrial production for October and the NAHB housing market index for November are due in the North American session.
