Investing.com - The U.S. dollar fell to a one-week low against the yen on Tuesday, as market sentiment came under pressure after Chinese trade balance data sparked fresh global growth concerns and as worries over the handling of the euro zone’s debt crisis continued to weigh.
USD/JPY hit 79.36 during early European morning trade, the pair’s lowest since July 2; the pair subsequently consolidated at 79.38, declining 0.22%.
The pair was likely to find support at 79.12, the low of June 29 and resistance at 79.76, Monday’s high.
Market sentiment remained under pressure after a meeting of euro zone finance ministers on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, while Italy’s 10-year bonds were at 6.10%, both above the 6% threshold which is widely seen as unsustainable.
Meanwhile, data showed that China's imports in June grew at half the expected pace, underscoring that the country’s economy and domestic demand are cooling quickly, even though export growth was slightly better than expected.
Investors were also eyeing the outcome of the Bank of Japan’s policy-setting meeting on Thursday, amid growing expectations for further easing measures.
Elsewhere, the yen was higher against the euro with EUR/JPY shedding 0.37%, to hit 97.59.
Euro zone finance ministers were to hold a second day of talks in Brussels.
USD/JPY hit 79.36 during early European morning trade, the pair’s lowest since July 2; the pair subsequently consolidated at 79.38, declining 0.22%.
The pair was likely to find support at 79.12, the low of June 29 and resistance at 79.76, Monday’s high.
Market sentiment remained under pressure after a meeting of euro zone finance ministers on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, while Italy’s 10-year bonds were at 6.10%, both above the 6% threshold which is widely seen as unsustainable.
Meanwhile, data showed that China's imports in June grew at half the expected pace, underscoring that the country’s economy and domestic demand are cooling quickly, even though export growth was slightly better than expected.
Investors were also eyeing the outcome of the Bank of Japan’s policy-setting meeting on Thursday, amid growing expectations for further easing measures.
Elsewhere, the yen was higher against the euro with EUR/JPY shedding 0.37%, to hit 97.59.
Euro zone finance ministers were to hold a second day of talks in Brussels.