Investing.com – The U.S. dollar erased early losses to soar to a 5-week high on Wednesday, as an increase in U.S. Treasury yields made assets denominated in the greenback more attractive to holders of other currencies.
USD/JPY hit 82.41 during European afternoon trade, the pair’s highest since October 8; the pair subsequently consolidated at 82.35, gaining 0.82%.
The pair was likely to find support at 80.53, Tuesday’s low and resistance at 82.91, the high October 7.
Earlier in the day, U.S Treasuries fell, pushing the yield on the 10-year note to a 7-week high, before the Federal Reserve releases a schedule of debt purchases later in the day.
Meanwhile, the President of the Federal Reserve Bank of Dallas Richard Fisher said that Federal Reserve policy makers support a strong U.S. dollar and want to ensure that it does not lose its purchasing power.
Mr. Fisher said, “All of us are believers in a strong dollar. We want to make sure that the dollar has its purchasing power and we want to make sure it is of great international standing.”
Also Tuesday, official data showed that consumer confidence in Japan fell for the fourth consecutive month in October.
Concerns about job security and wage growth eased slightly in the October survey, although business sentiment in general has been hit by the appreciation of the yen, which hurts exporter profits.
The yen was also down against the euro, with EUR/JPY gaining 0.79% to hit 113.40.
Later in the day, the U.S. was to release its weekly report on initial jobless claims. The data was being released one day earlier than usual due to a U.S. public holiday. The country was also due to publish data on its trade balance and import prices.
USD/JPY hit 82.41 during European afternoon trade, the pair’s highest since October 8; the pair subsequently consolidated at 82.35, gaining 0.82%.
The pair was likely to find support at 80.53, Tuesday’s low and resistance at 82.91, the high October 7.
Earlier in the day, U.S Treasuries fell, pushing the yield on the 10-year note to a 7-week high, before the Federal Reserve releases a schedule of debt purchases later in the day.
Meanwhile, the President of the Federal Reserve Bank of Dallas Richard Fisher said that Federal Reserve policy makers support a strong U.S. dollar and want to ensure that it does not lose its purchasing power.
Mr. Fisher said, “All of us are believers in a strong dollar. We want to make sure that the dollar has its purchasing power and we want to make sure it is of great international standing.”
Also Tuesday, official data showed that consumer confidence in Japan fell for the fourth consecutive month in October.
Concerns about job security and wage growth eased slightly in the October survey, although business sentiment in general has been hit by the appreciation of the yen, which hurts exporter profits.
The yen was also down against the euro, with EUR/JPY gaining 0.79% to hit 113.40.
Later in the day, the U.S. was to release its weekly report on initial jobless claims. The data was being released one day earlier than usual due to a U.S. public holiday. The country was also due to publish data on its trade balance and import prices.