Investing.com - The dollar fell against the yen on Tuesday as escalating tensions between the U.S. and Syria prompted investors to avoid the greenback and seek safe harbor in the Japanese currency.
Concerns that limited missile strikes against Syria could begin as early as Thursday further weakened the greenback.
In U.S. trading on Tuesday, USD/JPY was trading at 97.12, down 1.41%, up from a session low of 97.01 and off a high of 98.54.
The pair was likely to find resistance at 98.94, Monday's high, and support at 96.92, the low from Aug. 20.
Syria's alleged use of chemical weapons in its internal conflict steered investors away from the dollar as the possibility of U.S. military strikes appeared to be on the rise.
The yen, meanwhile, enjoyed safe-haven appeal throughout the day.
U.S. Defense Secretary Chuck Hagel said earlier the military is ready to take action against Syria if called upon by the White House.
The U.S. insists the Syrian military has used chemical weapons during its internal conflict as have the U.K. and others, a charge Damascus has denied.
On Monday, U.S. Secretary of State John Kerry said the world would hold Syria accountable for using chemical weapons.
Russia and China, meanwhile, have warned against strikes against Syria, while Iran has said a U.S. attack would embroil the oil-rich region in conflict.
Meanwhile in the U.S., the Conference Board said its index of consumer confidence rose to 81.5 in August from an upwardly revised 81.0 in July. Analysts had expected the index to fall to 79.0.
Elsewhere in the U.S., the S&P/Case Shiller composite index of 20 metropolitan areas rose 12.1% on year in June, in line with market expectations.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 1.67% and trading at 150.85 and EUR/JPY trading down 1.27% at 130.02.
Meanwhile in Europe, the Ifo German business climate index hit a 16-month high of 107.5 in August from 106.2 in July, which failed to make much of an impact in front of the yen. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
Concerns that limited missile strikes against Syria could begin as early as Thursday further weakened the greenback.
In U.S. trading on Tuesday, USD/JPY was trading at 97.12, down 1.41%, up from a session low of 97.01 and off a high of 98.54.
The pair was likely to find resistance at 98.94, Monday's high, and support at 96.92, the low from Aug. 20.
Syria's alleged use of chemical weapons in its internal conflict steered investors away from the dollar as the possibility of U.S. military strikes appeared to be on the rise.
The yen, meanwhile, enjoyed safe-haven appeal throughout the day.
U.S. Defense Secretary Chuck Hagel said earlier the military is ready to take action against Syria if called upon by the White House.
The U.S. insists the Syrian military has used chemical weapons during its internal conflict as have the U.K. and others, a charge Damascus has denied.
On Monday, U.S. Secretary of State John Kerry said the world would hold Syria accountable for using chemical weapons.
Russia and China, meanwhile, have warned against strikes against Syria, while Iran has said a U.S. attack would embroil the oil-rich region in conflict.
Meanwhile in the U.S., the Conference Board said its index of consumer confidence rose to 81.5 in August from an upwardly revised 81.0 in July. Analysts had expected the index to fall to 79.0.
Elsewhere in the U.S., the S&P/Case Shiller composite index of 20 metropolitan areas rose 12.1% on year in June, in line with market expectations.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 1.67% and trading at 150.85 and EUR/JPY trading down 1.27% at 130.02.
Meanwhile in Europe, the Ifo German business climate index hit a 16-month high of 107.5 in August from 106.2 in July, which failed to make much of an impact in front of the yen. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.