Investing.com – The U.S. dollar fell to a 4-day low against the yen on Tuesday, but declines were limited amid fears that Japan would intervene in the currency market if the pair fell below 85.00.
USD/JPY hit 85.28 during European morning trade, the pair's lowest since September 16; the pair subsequently consolidated at 85.34, shedding 0.42%.
The pair was likely to find support at 85.00 and resistance at 85.92, the high of September 17.
Later Tuesday, the U.S. was to release data on building permits and housing starts. Also Tuesday, the U.S. Federal Reserve was to announce its benchmark interest rate. The announcement was to be followed by a closely watched statement on U.S. monetary policy and economic outlook.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.15% to hit 112.11.
Earlier in the day, opinion polls showed that Japan's prime minister Naoto Kan surged in popularity, following Japan's two trillion yen intervention in currency markets last Wednesday.
USD/JPY hit 85.28 during European morning trade, the pair's lowest since September 16; the pair subsequently consolidated at 85.34, shedding 0.42%.
The pair was likely to find support at 85.00 and resistance at 85.92, the high of September 17.
Later Tuesday, the U.S. was to release data on building permits and housing starts. Also Tuesday, the U.S. Federal Reserve was to announce its benchmark interest rate. The announcement was to be followed by a closely watched statement on U.S. monetary policy and economic outlook.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.15% to hit 112.11.
Earlier in the day, opinion polls showed that Japan's prime minister Naoto Kan surged in popularity, following Japan's two trillion yen intervention in currency markets last Wednesday.