Investing.com - The U.S. dollar traded lower against the Japanese yen during Tuesday’s Asian session as traders embraced the yen as a safe-haven alternative to the greenback.
In Asian trading Tuesday, USD/JPY fell 0.30% to 98.22. The pair was likely to find resistance at 99.15, Friday's high, and support at 96.92, the low from Aug. 20.
The yen has been bid higher by traders due in part to the fact that Japan does not depend on external financing to service its deficits. Additionally, although Japan earlier this month reported a smaller-than-expected current account surplus, the country still has a surplus.
That makes the yen all the more appealing at a time when some marquee emerging markets are home to widening account deficits. And it is those widening account deficits in developing economies such as India and Indonesia that have boosted the allure of the yen.
The yen was also supported by some weak U.S. economic data. In U.S. economic news out Monday, the Commerce Department said durable goods orders fell 7.3% last month following a 3.9% rise in June.
Economists expected a July decline of 4%. Non-defense durable goods orders fell 3.3%, the biggest monthly drop since February. Core capital goods orders rose by a revised 1.3% in June.
Elsewhere, AUD/JPY dipped 0.73% to 88.28 as the Aussie sank against most of its major rivals due to increased volatility.
NZD/JPY fell 0.65% to 76.86 while EUR/JPY lost 0.21% to 131.42.
In Asian trading Tuesday, USD/JPY fell 0.30% to 98.22. The pair was likely to find resistance at 99.15, Friday's high, and support at 96.92, the low from Aug. 20.
The yen has been bid higher by traders due in part to the fact that Japan does not depend on external financing to service its deficits. Additionally, although Japan earlier this month reported a smaller-than-expected current account surplus, the country still has a surplus.
That makes the yen all the more appealing at a time when some marquee emerging markets are home to widening account deficits. And it is those widening account deficits in developing economies such as India and Indonesia that have boosted the allure of the yen.
The yen was also supported by some weak U.S. economic data. In U.S. economic news out Monday, the Commerce Department said durable goods orders fell 7.3% last month following a 3.9% rise in June.
Economists expected a July decline of 4%. Non-defense durable goods orders fell 3.3%, the biggest monthly drop since February. Core capital goods orders rose by a revised 1.3% in June.
Elsewhere, AUD/JPY dipped 0.73% to 88.28 as the Aussie sank against most of its major rivals due to increased volatility.
NZD/JPY fell 0.65% to 76.86 while EUR/JPY lost 0.21% to 131.42.