Investing.com – The euro slumped to a 10-year low against the yen on Thursday, as renewed concerns over the outlook for global growth saw investors shun riskier assets in favor of the safe haven yen.
EUR/JPY hit 102.61 during European morning trade, the pair’s lowest since mid-2001; the pair subsequently consolidated at 102.96, shedding 0.78%.
The pair was likely to find support at 101.59 and resistance at 104.36, the day’s high.
After its policy meeting on Wednesday, the Federal Reserve warned of “significant downside risks” facing the U.S. economy and announced fresh measures to boost growth.
The Fed unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
Meanwhile, concerns over a slowdown in the euro zone were underlined after data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the 17-nation single currency bloc slumped to the lowest since August 2009.
The data came after a report earlier showed that Chinese factory output fell for a third consecutive month in September, fanning fears over a slowdown in the world’s second largest economy.
The euro was also sharply lower against the U.S. dollar, with EUR/USD tumbling 0.81% to hit 1.3464.
Meanwhile, Greece’s government announced Wednesday that it had adopted further austerity measures to ensure it can reach deficit-reduction targets in order to access its next tranche of financial aid, due next month.
EUR/JPY hit 102.61 during European morning trade, the pair’s lowest since mid-2001; the pair subsequently consolidated at 102.96, shedding 0.78%.
The pair was likely to find support at 101.59 and resistance at 104.36, the day’s high.
After its policy meeting on Wednesday, the Federal Reserve warned of “significant downside risks” facing the U.S. economy and announced fresh measures to boost growth.
The Fed unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
Meanwhile, concerns over a slowdown in the euro zone were underlined after data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the 17-nation single currency bloc slumped to the lowest since August 2009.
The data came after a report earlier showed that Chinese factory output fell for a third consecutive month in September, fanning fears over a slowdown in the world’s second largest economy.
The euro was also sharply lower against the U.S. dollar, with EUR/USD tumbling 0.81% to hit 1.3464.
Meanwhile, Greece’s government announced Wednesday that it had adopted further austerity measures to ensure it can reach deficit-reduction targets in order to access its next tranche of financial aid, due next month.