Investing.com - The euro extended gains against the yen on Tuesday, amid fresh hopes that European Union leaders will soon take decisive steps to tackle the financial crisis in the single currency bloc.
EUR/JPY hit 103.97 during European afternoon trade, the pair's highest since September 22; the pair subsequently consolidated at 103.87, climbing 0.5%.
The pair was likely to find support at 102.22, the low of September 23 and resistance at 105.17, the high of September 20.
The single currency found support amid speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, the European Financial Stability Facility.
German Chancellor Angela Merkel urged lawmakers to back an EFSF expansion, ahead of a vote scheduled later in the week. Measures will have to be passed by all of the currency bloc's governments before steps to enhance the EFSF's role can be implemented.
Expectations were hit earlier after Spain's economy minister said plans to expand the fund sevenfold to EUR2 trillion were not on the table.
Also Tuesday, a report showed the GfK index of German consumer climate remained unchanged at 5.2 in August. Analysts had expected the index to decline to 5.1 last month.
Meanwhile, the yen was lower against the dollar with USD/JPY rising 0.09%, to hit 76.55.
Earlier in the day, Japan's government said it intends to take new steps to lessen the impact of the strong yen on the country's economy and that it plans to enact the measures before it completes an extra budget to fund reconstruction spending.
EUR/JPY hit 103.97 during European afternoon trade, the pair's highest since September 22; the pair subsequently consolidated at 103.87, climbing 0.5%.
The pair was likely to find support at 102.22, the low of September 23 and resistance at 105.17, the high of September 20.
The single currency found support amid speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, the European Financial Stability Facility.
German Chancellor Angela Merkel urged lawmakers to back an EFSF expansion, ahead of a vote scheduled later in the week. Measures will have to be passed by all of the currency bloc's governments before steps to enhance the EFSF's role can be implemented.
Expectations were hit earlier after Spain's economy minister said plans to expand the fund sevenfold to EUR2 trillion were not on the table.
Also Tuesday, a report showed the GfK index of German consumer climate remained unchanged at 5.2 in August. Analysts had expected the index to decline to 5.1 last month.
Meanwhile, the yen was lower against the dollar with USD/JPY rising 0.09%, to hit 76.55.
Earlier in the day, Japan's government said it intends to take new steps to lessen the impact of the strong yen on the country's economy and that it plans to enact the measures before it completes an extra budget to fund reconstruction spending.