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Forex - USD/JPY almost unchanged as E.Z. debt fears persist

Published 09/27/2011, 03:51 AM
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Investing.com - The U.S. dollar was almost unchanged against the yen on Tuesday, as investors remained concerned over the ongoing debt crisis in the euro zone, supporting safe haven demand.

USD/JPY hit 76.55 during early European trade, the daily high; the pair subsequently consolidated at 76.36, edging up 0.03%.

The pair was likely to find support at 76.94, the record low of August 18 and resistance at 76.96, the high of September 22.

Market sentiment was supported by speculation that euro zone leaders are considering ways to beef up the euro zone's bailout fund, the European Financial Stability Facility.

On Monday, a senior European Central Bank policymaker said the funds in the EUR440 billion EFSF could be used as collateral to borrow from the ECB, making more money available.

But investors remained cautious ahead of votes on expanding the role of the EFSF later in the week. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.

Also Tuesday, Japan's government said it wants to bring forward steps to lessen the impact of the strong yen on the country's economy and that it plans to enact the measures before it completes an extra budget to fund reconstruction spending.

Meanwhile, the yen was fractionally higher against the yen with EUR/JPY inching down 0.18%, to hit 103.18.

Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.

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