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Forex - Broadly weaker dollar hits 5-week low against yen

Published 05/05/2011, 03:37 AM
USD/JPY
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EUR/JPY
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Investing.com – The broadly weaker U.S. dollar slid to a five-week low against the yen on Thursday, hitting the lowest level since the Group of Seven joined the Bank of Japan in selling the yen on March 18.

USD/JPY hit 80.24 during early European trade, the pair’s lowest since March 18; the pair subsequently consolidated at 80.27, shedding 0.43%.

The pair was likely to find short-term support at 80.00 and resistance at 81.19, Wednesday’s high.

Data on Wednesday showing weaker-than-expected U.S. private sector employment growth and a slowdown in the service sector further underlined expectations that the Federal Reserve will not raise rates in the coming months.

The dollar has fallen 6% from a high near 85.50 reached early last month, following a coordinated G7 intervention after Japan’s earthquake, tsunami and nuclear crisis.

Meanwhile, the yen was fractionally lower against the euro, with EUR/JPY easing up 0.02% to hit 119.55.

Later Thursday, the U.S. was to publish official data on initial jobless claims and Federal Reserve Chairman Ben Bernanke was to speak.


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