Investing.com – The U.S. dollar tumbled to a fresh 4-day low against the yen on Tuesday, nearing its lowest level in 15 years, after the Bank of Japan left its benchmark interest rate unchanged, but held off on taking action to curb the strengthening yen.
USD/JPY hit 83.73 during European morning trade, the pair’s lowest since September 1; the pair subsequently consolidated at 83.83, shedding 0.44%.
The pair was likely to find support at 83.58, the low of August 24 and 15-year low, and resistance at 85.21, the high of September 3.
Earlier in the day, the BoJ said it was keeping its benchmark interest rate unchanged at 0.10% in September, in a move in line with expectations. The central bank has not changed its benchmark interest rate since December 2008.
In a monetary policy statement released after the announcement, the BoJ said Japan's economy showed “further signs of a moderate recovery”.
However, the statement added that with the “backdrop of increased uncertainty about the future, especially for the U.S. economy, and associated instability in the foreign exchange and stock markets, attention should be paid to downside risks to Japan's economy,".
Meanwhile, the central bank held off on introducing further measures designed to curb the yen’s recent gains in the currency market, but repeated that it will take timely action when necessary.
The yen was also up against the euro, with EUR/JPY shedding 1.07% to hit 107.26.
Earlier in the day, official Japanese data showed that its index of leading indicators fell more-than-expected in July.
USD/JPY hit 83.73 during European morning trade, the pair’s lowest since September 1; the pair subsequently consolidated at 83.83, shedding 0.44%.
The pair was likely to find support at 83.58, the low of August 24 and 15-year low, and resistance at 85.21, the high of September 3.
Earlier in the day, the BoJ said it was keeping its benchmark interest rate unchanged at 0.10% in September, in a move in line with expectations. The central bank has not changed its benchmark interest rate since December 2008.
In a monetary policy statement released after the announcement, the BoJ said Japan's economy showed “further signs of a moderate recovery”.
However, the statement added that with the “backdrop of increased uncertainty about the future, especially for the U.S. economy, and associated instability in the foreign exchange and stock markets, attention should be paid to downside risks to Japan's economy,".
Meanwhile, the central bank held off on introducing further measures designed to curb the yen’s recent gains in the currency market, but repeated that it will take timely action when necessary.
The yen was also up against the euro, with EUR/JPY shedding 1.07% to hit 107.26.
Earlier in the day, official Japanese data showed that its index of leading indicators fell more-than-expected in July.