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Forex - Yen bounces against dollar, erasing losses

Published 06/08/2010, 06:01 AM
USD/JPY
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Investing.com – The yen bounced against the U.S. dollar on Tuesday, erasing earlier losses suffered after an index of leading Japanese economic indicators fell for the first time in 14 months.

USD/JPY hit 91.34 during European morning trade, dropping 0.04%, after retreating from the daily high of 91.93.

The pair was likely to find resistance at 92.88, the high of June 4, and support at 90.54, the low of June 1.

Earlier in the day, Japan's Cabinet Office said in a report that its index of leading indicators, a key barometer of the economy, unexpectedly dropped in April.

Also Tuesday, Reuters quoted a source close to Motohisa Ikeda, who favors all-out monetary easing by the Bank of Japan, as saying the lawmaker has been asked to become Japan's deputy finance minister.

The yen also rose versus sterling on Tuesday, with GBP/JPY shedding 0.27% to reach 131.83.

Later in the day, two members of the Federal Reserve's Federal Open Market Committee, Elizabeth Duke and Thomas Hoenig, were due to speak at public engagements. Traders were likely to scrutinize their comments for clues to shifts in future monetary policy.

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