Investing.com – The U.S. dollar erased losses against the yen on Tuesday, rising to a daily high, after a warning from Japan’s finance minister that the country would “act decisively if needed” to stem the yens gains.
USD/JPY clawed back up from a low of 80.61 to hit 81.04 during early European trade, gaining 0.28%.
The pair was likely to find support at 79.75, the low of April 19, 1995 and the all-time low and resistance at 81.92, the high of October 19.
Earlier in the day, Finance Minister Yoshihiko Noda said that Monday’s exchange rate moves were “one-sided” after the currency fell to 80.41; it’s lowest since April 1995. He added that the Japanese government is paying "grave attention" to market developments.
Also Tuesday, Japan's Cabinet approved extra stimulus spending which the government estimates will help lift the nation's GDP by 0.6%. "This is an emergency economic package to deal with a rising yen and deflation," minister Noda said.
The yen was also down against the euro, with EUR/JPY gaining 0.21% to hit 113.07.
Later in the day, the U.S. was to release industry data on consumer confidence and house prices as well as official data on manufacturing.
USD/JPY clawed back up from a low of 80.61 to hit 81.04 during early European trade, gaining 0.28%.
The pair was likely to find support at 79.75, the low of April 19, 1995 and the all-time low and resistance at 81.92, the high of October 19.
Earlier in the day, Finance Minister Yoshihiko Noda said that Monday’s exchange rate moves were “one-sided” after the currency fell to 80.41; it’s lowest since April 1995. He added that the Japanese government is paying "grave attention" to market developments.
Also Tuesday, Japan's Cabinet approved extra stimulus spending which the government estimates will help lift the nation's GDP by 0.6%. "This is an emergency economic package to deal with a rising yen and deflation," minister Noda said.
The yen was also down against the euro, with EUR/JPY gaining 0.21% to hit 113.07.
Later in the day, the U.S. was to release industry data on consumer confidence and house prices as well as official data on manufacturing.