Investing.com - The U.S. dollar was steady against the yen on Tuesday, as investors eyed a Spanish government debt auction later in the day amid sustained concerns over the worsening of the country’s financial crisis.
USD/JPY hit 80.54 during early European trade, the daily high; the pair subsequently consolidated at 80.49, inching up 0.07%.
The pair was likely to find support at 80.00, the low of February 28 and resistance at 80.99, Monday’s high.
Investors were cautious as Spain was due to auction up to EUR3 billion of 12 and 18-month government bonds later Tuesday, as concerns mounted that the government will not be able to meet deficit reduction targets in the face of a looming recession.
The cost of insuring Spanish sovereign debt against default rose to a record on Monday, pushing the yield on the country’s 10-year bonds above 6% for the first time since early December.
Markets were also jittery as concerns over China’s economic outlook intensified after data released earlier showed that foreign direct investment into China in March declined 6.1% from a year earlier to USD11.76 billion.
Earlier in the day, Japan said it will provide USD60 billion to the International Monetary Fund’s effort to expand its resources and shield the global economy against any deepening of Europe’s debt crisis.
Elsewhere, the yen was higher against the euro with EUR/JPY falling 0.09%, to hit 105.59.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.
USD/JPY hit 80.54 during early European trade, the daily high; the pair subsequently consolidated at 80.49, inching up 0.07%.
The pair was likely to find support at 80.00, the low of February 28 and resistance at 80.99, Monday’s high.
Investors were cautious as Spain was due to auction up to EUR3 billion of 12 and 18-month government bonds later Tuesday, as concerns mounted that the government will not be able to meet deficit reduction targets in the face of a looming recession.
The cost of insuring Spanish sovereign debt against default rose to a record on Monday, pushing the yield on the country’s 10-year bonds above 6% for the first time since early December.
Markets were also jittery as concerns over China’s economic outlook intensified after data released earlier showed that foreign direct investment into China in March declined 6.1% from a year earlier to USD11.76 billion.
Earlier in the day, Japan said it will provide USD60 billion to the International Monetary Fund’s effort to expand its resources and shield the global economy against any deepening of Europe’s debt crisis.
Elsewhere, the yen was higher against the euro with EUR/JPY falling 0.09%, to hit 105.59.
Later in the day, the U.S. was to produce government data on building permits, housing starts and industrial production.