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Forex - Dollar tumbles to 12-day low against yen on Libya unrest

Published 02/24/2011, 03:48 AM
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Investing.com – The U.S. dollar tumbled to a 12-day low against the yen on Thursday, as concerns over escalating violence in Libya fuelled increased investor demand for the safe haven yen.

USD/JPY hit 81.84 during European morning trade, the pair’s lowest since February 8; the pair subsequently consolidated at 81.86, tumbling 0.79%.

The pair was likely to find support at 81.4, the low of February 3 and resistance at 82.51, the day’s high.

On Wednesday, U.S. President Barack Obama condemned violence against protesters in Libya, calling it "outrageous" and "unacceptable." He said the U.S. was preparing a "full range" of options.

The greenback was also weakened by concerns that higher oil prices may take a toll on the U.S. economic recovery.

Earlier in the day, U.S. oil prices briefly touched USD100 a barrel for the first time since October of 2008 as concerns mounted that Libya's political turmoil could reduce global supply.

The yen was also sharply higher against the euro, with EUR/JPY shedding 0.69% to hit 112.64.

Later in the day, the U.S. was to publish reports on durable goods orders and initial jobless claims, as well as data on new home sales.


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