Investing.com - The dollar rose to one-week highs against the yen on Thursday after the minutes of the Federal Reserve’s July meeting indicated support for tapering, while improved Chinese manufacturing data curbed demand for the safe haven yen.
USD/JPY hit 98.33 during late Asian trade, the highest since August 15; the pair subsequently consolidated at 98.19, gaining 0.52%.
The pair was likely to find support at 97.11, Wednesday’s low and resistance at 98.64, the high of August 15.
The minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
The dollar extended gains against the yen after data out of China eased concerns over a slowdown in the world’s second largest economy.
Data on Thursday showed that the preliminary reading of China’s HSBC manufacturing purchasing managers’ index rose to a four-month high of 50.1 in August, up from 47.7 in July. Economists had forecast a reading of 48.3.
The yen was lower against the euro, with EUR/JPY rising 0.335 to 130.89.
In the euro zone, data showed that the flash French manufacturing PMI remained unchanged at 49.7 in August, undershooting expectations for an uptick to 50.3.
The French services PMI declined to a two-month low of 47.7 from 48.6 in July, compared to expectations for an improvement to 49.2.
Germany and the euro zone were to release data on manufacturing and service sector activity later in the session, while the U.S. was to publish a report on initial jobless claims.
USD/JPY hit 98.33 during late Asian trade, the highest since August 15; the pair subsequently consolidated at 98.19, gaining 0.52%.
The pair was likely to find support at 97.11, Wednesday’s low and resistance at 98.64, the high of August 15.
The minutes of the Fed’s July meeting showed that officials were "broadly comfortable" with plans to scale back the bank’s USD85 billion-a-month stimulus program.
However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate.
The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.
The dollar extended gains against the yen after data out of China eased concerns over a slowdown in the world’s second largest economy.
Data on Thursday showed that the preliminary reading of China’s HSBC manufacturing purchasing managers’ index rose to a four-month high of 50.1 in August, up from 47.7 in July. Economists had forecast a reading of 48.3.
The yen was lower against the euro, with EUR/JPY rising 0.335 to 130.89.
In the euro zone, data showed that the flash French manufacturing PMI remained unchanged at 49.7 in August, undershooting expectations for an uptick to 50.3.
The French services PMI declined to a two-month low of 47.7 from 48.6 in July, compared to expectations for an improvement to 49.2.
Germany and the euro zone were to release data on manufacturing and service sector activity later in the session, while the U.S. was to publish a report on initial jobless claims.