Last Updated : Oct 05, 2011 08:09 AM IST | Source:

Forex - USD/JPY declines in mid-day Asian trade

Forex - USD/JPY declines in mid-day Asian trade

Forexpros -
Forexpros - The U.S. dollar moved lower against the Japanese yen in Asian trade Wednesday, with encouraging moves on European debt and Wall Street gains peeling away some enthusiasm for the safe-haven greenback.

In mid-day Asian trade USD/JPY hit 76.62, the pair's highest since Monday; the pair subsequently consolidated at 76.67, slipping 0.18%.

The pair was likely to find support at 76.10, the low of September 22, and resistance at 77.25, Monday's high.

Tuesday U.S. Federal Reserve Chairman Ben Bernanke said the Fed may begin a new lending program to address a potential threat to the U.S. financial system if Europe's debt crisis worsens.

'We would make sure we would stand ready to provide as much liquidity against collateral as needed as lender of last resort for our banking system,' Bernanke said during testimony with the Joint Economic Committee of Congress.

Bernanke added that the U.S. economic recovery was 'close to faltering' and that legislators should refrain from fiscal policies that retard growth.

Wall Street shares put together a late-session rally on news from Europe, with the benchmark Dow Jones recovering from as much as 200 points lower.

The Dow Jones Industrial Average added 1.44%, the Nasdaq Composite Index rose 2.95%, and the S&P 500 was lifted 2.25%.

Earlier in the day, the U.S. Census Bureau reported that factory orders declined by a seasonally adjusted 0.2% in August, down from a 2.1% gain in the previous month. Economists had forecast a 0.1% fall.

Also Tuesday, finance officials from the European Union were reported studying ways to coordinate a recapitalization of regional financial institutions, conceding that not enough had been done to reassure investors that European banks would remain solvent.

Meanwhile, the yen moved higher against both the euro and the British pound with
EUR/JPY down 0.62% to hit 101.88, and GBP/JPY lower by 0.50% to hit 118.33.

Monthly figures for U.S. non-farm employment were due out from the U.S. Department of Labor later Wednesday.

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First Published on Oct 5, 2011 08:09 am
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