Investing.com - The U.S. dollar dropped to a fresh session low against the yen on Thursday, as disappointing U.S. employment data added to concerns over the strength of the country’s economic recovery, while euro zone debt fears continued to weigh.
USD/JPY hit 79.22 during European afternoon trade, the daily low; the pair subsequently consolidated at 79.22, dropping 0.67%.
The pair was likely to find support at 78.78, the low of June 20 and resistance at 79.94, the day’s high.
Official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell significantly more-than-expected, matching the lowest level in four years.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 7 fell to a seasonally adjusted 350,000, compared to expectations for a decline to 372,000.
The previous week’s figure was revised up to 376,000 from a previously reported 374,000.
A separate report showed that U.S. import prices fell significantly more-than-expected in June, dropping by a seasonally adjusted 2.7% in June, compared to expectations for a 1.7% decline.
Import prices for May were revised to a 1.2% drop from a previously reported decline of 1.0%.
The data came after the Federal Reserve said in the minutes of its June policy meeting that the U.S. economy would have to worsen further before the central bank implements additional easing measures.
Meanwhile, market sentiment remained under pressure after the European Central Bank’s monthly bulletin reiterated earlier that downside risks have materialized and that growth in the region will remain weak.
Investors were also cautious after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY tumbling 1.19%, to hit 96.46.
Also Thursday, the Bank of Japan left its benchmark interest rate unchanged, close to zero, and held off on further monetary easing measures, stating that domestic demand will keep Japan’s economic recovery on track.
The bank chose however reshuffle the composition of its JPY70 trillion stimulus program to buy more short-term securities and reduce the amount offered in fixed-rate market operations.
USD/JPY hit 79.22 during European afternoon trade, the daily low; the pair subsequently consolidated at 79.22, dropping 0.67%.
The pair was likely to find support at 78.78, the low of June 20 and resistance at 79.94, the day’s high.
Official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell significantly more-than-expected, matching the lowest level in four years.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 7 fell to a seasonally adjusted 350,000, compared to expectations for a decline to 372,000.
The previous week’s figure was revised up to 376,000 from a previously reported 374,000.
A separate report showed that U.S. import prices fell significantly more-than-expected in June, dropping by a seasonally adjusted 2.7% in June, compared to expectations for a 1.7% decline.
Import prices for May were revised to a 1.2% drop from a previously reported decline of 1.0%.
The data came after the Federal Reserve said in the minutes of its June policy meeting that the U.S. economy would have to worsen further before the central bank implements additional easing measures.
Meanwhile, market sentiment remained under pressure after the European Central Bank’s monthly bulletin reiterated earlier that downside risks have materialized and that growth in the region will remain weak.
Investors were also cautious after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY tumbling 1.19%, to hit 96.46.
Also Thursday, the Bank of Japan left its benchmark interest rate unchanged, close to zero, and held off on further monetary easing measures, stating that domestic demand will keep Japan’s economic recovery on track.
The bank chose however reshuffle the composition of its JPY70 trillion stimulus program to buy more short-term securities and reduce the amount offered in fixed-rate market operations.