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Forex - Dollar moves lower against yen

Published 08/27/2013, 03:07 AM
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Investing.com - The dollar was lower against the traditional safe haven yen on Tuesday, amid concerns that the U.S. could be growing closer to taking possible military action against Syria’s government.

USD/JPY hit 98.04 during late Asian trade, the lowest since August 22; the pair subsequently consolidated at 98.11, shedding 0.40%.

The pair was likely to find support at 97.57, the low of August 27 and resistance at 98.83, Monday’s high.

Demand for the yen was boosted after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.

Meanwhile, uncertainty over how soon the Federal Reserve will start to reduce stimulus measures continued after data on Monday showed that U.S. durable goods orders fell more than expected last month, raising doubts over the economic recovery.

The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.

The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.

Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.41% to 131.14.

The Ifo institute was to release a report on German business climate later Tuesday. The U.S. was to publish private sector data on house price inflation, as well as a closely watched report on consumer confidence.





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