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Forex - Dollar hits 2-day high vs. yen as Greece worries wane

Published 05/10/2010, 06:39 AM
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Investing.com – The U.S. dollar hit a 2-day high against the yen on Monday, as fears over euro zone sovereign debt waned after European leaders agreed to provide a massive rescue package to contain Greece's debt crisis.

USD/JPY hit 93.51 during European morning trade, its highest since Thursday; the pair subsequently consolidated around 93.23, gaining 1.79%. The pair was likely to find support at 87.95, Thursday's low and a 5-month low, and resistance at 94.99, Thursday's high.

Also Monday, Bank of Japan Deputy Governor Hirohide Yamaguchi said Greece’s deepening fiscal woes are not harming Japan’s economy and that policy measures taken around the world will help contain the European sovereign debt crisis, Bloomberg reported.

The Japanese currency also plunged versus the euro on Monday, with EUR/JPY skyrocketing 3.87% to reach 121.31.

Earlier in the day, European Union finance ministers agreed on the rescue deal, which would provide EUR 435 billion in new loans and EUR 59 billion under an existing lending program. The Spanish finance minister, Elena Salgado, who unveiled the package, added that the International Monetary Fund was ready to give EUR 250 billion separately.

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