Investing.com – The U.S. dollar extended losses against the yen on Tuesday, plunging to a fresh 15-year low, as renewed fears rose over the global economic recovery.
USD/JPY hit 83.53 during European afternoon trade, the pair’s lowest since June 28, 1995; the pair subsequently consolidated at 83.61, shedding 0.70%.
The pair was likely to find support at 82.50, the low of May 31, 1995, and resistance at 84.48, Monday’s high.
Earlier in the day, Bank of Japan Governor Masaaki Shirakawa said the central bank was paying close attention to the yen’s movements in the currency market and repeated that it would act to curb the currency’s rises “when necessary”.
His comments followed the BoJ’s announcement to keep its benchmark interest rate unchanged at 0.10% in September, as widely expected. The central bank has not changed its benchmark interest rate since December 2008.
In a monetary policy statement released after the announcement, the BoJ said Japan's economy showed “further signs of a moderate recovery”.
However, the statement added that with the “backdrop of increased uncertainty about the future, especially for the U.S. economy, and associated instability in the foreign exchange and stock markets, attention should be paid to downside risks to Japan's economy,".
The yen was also up against the euro, with EUR/JPY tumbling 1.67% to hit 106.63.
Earlier in the day, official Japanese data showed that its index of leading indicators fell more-than-expected in July.
USD/JPY hit 83.53 during European afternoon trade, the pair’s lowest since June 28, 1995; the pair subsequently consolidated at 83.61, shedding 0.70%.
The pair was likely to find support at 82.50, the low of May 31, 1995, and resistance at 84.48, Monday’s high.
Earlier in the day, Bank of Japan Governor Masaaki Shirakawa said the central bank was paying close attention to the yen’s movements in the currency market and repeated that it would act to curb the currency’s rises “when necessary”.
His comments followed the BoJ’s announcement to keep its benchmark interest rate unchanged at 0.10% in September, as widely expected. The central bank has not changed its benchmark interest rate since December 2008.
In a monetary policy statement released after the announcement, the BoJ said Japan's economy showed “further signs of a moderate recovery”.
However, the statement added that with the “backdrop of increased uncertainty about the future, especially for the U.S. economy, and associated instability in the foreign exchange and stock markets, attention should be paid to downside risks to Japan's economy,".
The yen was also up against the euro, with EUR/JPY tumbling 1.67% to hit 106.63.
Earlier in the day, official Japanese data showed that its index of leading indicators fell more-than-expected in July.