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Forex - Dollar tumbles to 5-week low against stronger yen

Published 05/03/2011, 03:47 AM
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Investing.com – The U.S. dollar was down against the broadly stronger yen on Tuesday, amid increased safe haven demand, following reports that the U.S. and Australia increased security at their embassies amid fears of reprisals after Sunday’s killing of Osama bin Laden.

USD/JPY hit 80.90 during early European trade, the pair’s lowest since March 24; the pair subsequently consolidated at 80.94, shedding 0.34%.

The pair was likely to find short-term support at 80.70, the low of March 23 and resistance at 81.68, Monday’s high.

Earlier in the day, Interpol Secretary General Ronald Noble urged "extra vigilance" from "law enforcement authorities to a heightened terror risk from al-Qaeda affiliated or al-Qaeda inspired terrorists as a result of bin Laden's death".

Meanwhile, markets in Japan remained closed for the Golden Week holiday.

The yen was also up against the euro, with EUR/JPY shedding 0.60% to hit 119.70.

Later Tuesday, the U.S. was to release government data on factory orders.

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