Investing.com - The dollar edged lower against the yen on Tuesday as safe haven demand for the yen was boosted by falls in Asian equities markets amid fears over a credit squeeze in China.
USD/JPY hit 97.28 during late Asian trade, the session low; the pair subsequently consolidated at 97.51, shedding 0.21%.
The pair was likely to find support at 96.85, Friday’s low and resistance at 98.70, Monday’s high.
Japan’s Nikkei and Shanghai’s stock exchange ended lower on Tuesday as sustained fears over financial stability in China spooked investors.
The dollar also eased after Federal Reserve officials played down fears over an imminent end to the central bank’s stimulus program.
On Monday, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said the central bank was committed to continuing its bond purchase program until the U.S. unemployment rate falls further.
Dallas Fed President Richard Fisher also downplayed market jitters over tapering as overdone.
The comments came after Fed Chairman Ben Bernanke said last week that the bank could begin slowing asset purchases by the end this year if the economy continues to pick up.
Elsewhere, the yen was steady against the euro, with EUR/JPY dipping 0.04% to 128.15.
The U.S. was to release official data on durable goods orders and reports on home sales and consumer confidence later in the trading day.
USD/JPY hit 97.28 during late Asian trade, the session low; the pair subsequently consolidated at 97.51, shedding 0.21%.
The pair was likely to find support at 96.85, Friday’s low and resistance at 98.70, Monday’s high.
Japan’s Nikkei and Shanghai’s stock exchange ended lower on Tuesday as sustained fears over financial stability in China spooked investors.
The dollar also eased after Federal Reserve officials played down fears over an imminent end to the central bank’s stimulus program.
On Monday, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said the central bank was committed to continuing its bond purchase program until the U.S. unemployment rate falls further.
Dallas Fed President Richard Fisher also downplayed market jitters over tapering as overdone.
The comments came after Fed Chairman Ben Bernanke said last week that the bank could begin slowing asset purchases by the end this year if the economy continues to pick up.
Elsewhere, the yen was steady against the euro, with EUR/JPY dipping 0.04% to 128.15.
The U.S. was to release official data on durable goods orders and reports on home sales and consumer confidence later in the trading day.