Forex - Dollar holds gains against euro after Japan action

Published 10/31/2011, 07:58 AM
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Investing.com – The dollar held gains against the euro on Monday, after Japan’s intervention to weaken the yen, while ongoing concerns over the debt crisis in the euro zone also weighed on sentiment.

EUR/USD hit 1.3975 during European late morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.4002, tumbling 1.03%.

The pair was likely to find support at 1.3863, last Thursday’s low and resistance at 1.4200, Friday’s high.

Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early Asian trade.

Japan’s Vice Finance Minister Fumihiko Igarashi said that the intervention was not targeting specific currency levels and added that it was too early to assess the impact of the action, which may not yet have ended.

The euro remained under pressure amid concerns that last week's meeting of euro zone leaders offered few details on how a planned package of measures to contain the debt crisis in the region would be achieved.

The euro was also lower against the pound, with EUR/GBP shedding 0.30% to hit 0.8746.

Also Monday, official data showed that the annual rate of inflation in the euro zone was unchanged at its highest level in three years in October, while the number of people without jobs in the region hit a new record in September.

Eurostat said consumer prices rose 3% in the 12 months to October, unchanged from the previous month.

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