Investing.com - The U.S. dollar rose to a one-month high against the yen on Thursday, as lowered expectations for fresh easing steps by the Federal Reserve lent support to the greenback, while speculation that Japan may turn to more stimulus measures dampened demand for the yen.
USD/JPY hit 79.35 during early European trade, the pair’s highest since July 13; the pair subsequently consolidated at 79.22, rising 0.29%.
The pair was likely to find support at 78.78, the low of July 17 and resistance at 79.58, the high of July 10.
The greenback gained ground as a string of globally positive U.S. data over the week lowered expectations for fresh easing measures by the Fed.
Official data on Wednesday showed that industrial production in the U.S. rose by 0.6% in, beating expectations for a 0.5% increase and following a 0.1% rise the previous month.
Earlier in the week, a report showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase.
Investors were eyeing additional U.S. economic reports to be released later in the day, for further indications on the strength of the country’s economic recovery.
Meanwhile, expectations for a fresh intervention by the Bank of Japan weighed on the yen, after the bank’s policymakers clearly indicated that they were not ruling out any options to bolster growth, in the minutes of the central bank’s latest policy meeting released on Tuesday.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.09%, to hit 97.17.
Later in the day, the U.S. was to publish official data on building permits, as well as weekly government data on unemployment claims. The country was also to release official data on housing starts and a report on manufacturing activity in the Philadelphia area.
USD/JPY hit 79.35 during early European trade, the pair’s highest since July 13; the pair subsequently consolidated at 79.22, rising 0.29%.
The pair was likely to find support at 78.78, the low of July 17 and resistance at 79.58, the high of July 10.
The greenback gained ground as a string of globally positive U.S. data over the week lowered expectations for fresh easing measures by the Fed.
Official data on Wednesday showed that industrial production in the U.S. rose by 0.6% in, beating expectations for a 0.5% increase and following a 0.1% rise the previous month.
Earlier in the week, a report showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase.
Investors were eyeing additional U.S. economic reports to be released later in the day, for further indications on the strength of the country’s economic recovery.
Meanwhile, expectations for a fresh intervention by the Bank of Japan weighed on the yen, after the bank’s policymakers clearly indicated that they were not ruling out any options to bolster growth, in the minutes of the central bank’s latest policy meeting released on Tuesday.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.09%, to hit 97.17.
Later in the day, the U.S. was to publish official data on building permits, as well as weekly government data on unemployment claims. The country was also to release official data on housing starts and a report on manufacturing activity in the Philadelphia area.