Investing.com – The euro was higher against the yen on Thursday, as the single currency was supported by expectations for a rate hike by the European Central Bank next month, but gains were limited by concerns over Portugal’s debt problems.
EUR/JPY hit 114.52 during European late afternoon trade, the daily high; the pair subsequently consolidated at 114.43, gaining 0.39%.
The pair was likely to find support at 113.54, the days low and resistance at 115.02, Wednesday’s high.
Portugal's prime minister resigned on Wednesday after parliament rejected his government's latest austerity measures, increasing the likelihood that the country will need a bailout. Portugal needs to refinance EUR4.5 billion of sovereign debt in April, which could trigger a request for aid.
However, the single currency remained robust even after Moody's downgraded the credit rating of 30 Spanish banks by one or more notches, though the rating of the nation’s largest banks remained untouched.
The euro was also up against the Swiss franc, with EUR/CHF rising 0.17% to hit 1.2821.
Also Thursday, European Union leaders were to begin a two-day summit meeting to discuss ways to enlarge the effective lending capacity of the regions bailout fund, however, a final decision was not expected to be reached before June.
EUR/JPY hit 114.52 during European late afternoon trade, the daily high; the pair subsequently consolidated at 114.43, gaining 0.39%.
The pair was likely to find support at 113.54, the days low and resistance at 115.02, Wednesday’s high.
Portugal's prime minister resigned on Wednesday after parliament rejected his government's latest austerity measures, increasing the likelihood that the country will need a bailout. Portugal needs to refinance EUR4.5 billion of sovereign debt in April, which could trigger a request for aid.
However, the single currency remained robust even after Moody's downgraded the credit rating of 30 Spanish banks by one or more notches, though the rating of the nation’s largest banks remained untouched.
The euro was also up against the Swiss franc, with EUR/CHF rising 0.17% to hit 1.2821.
Also Thursday, European Union leaders were to begin a two-day summit meeting to discuss ways to enlarge the effective lending capacity of the regions bailout fund, however, a final decision was not expected to be reached before June.