Investing.com - The U.S. dollar fell to a two-month low against the yen on Tuesday, as better-than-expected Chinese growth data overshadowed sustained fears over the sovereign debt crisis in the euro zone.
USD/JPY hit 76.58 during late Asian trade, the pair’s lowest since November 18; the pair subsequently consolidated at 76.65, sliding 0.18%.
The pair was likely to find support at 76.33, the low of September 28 and resistance at 76.95, the high of January 3.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
Investors shrugged off an earlier decision by ratings agency Standard and Poor’s to downgrade the euro zone’s bailout fund, the European Financial Stability Facility, by one notch to AA+.
S&P said the decision was inevitable following Friday’s downgrade of France and Austria, two of the EFSF's guarantors.
Reacting to the announcement, Japan’s Finance Minister Jun Azumi said that the FESF’s bonds remained an “attractive” investment for the country.
Earlier Tuesday, Bank of Japan Governor Masaaki Shirakawa met with Prime Minister Yoshihiko Noda to discuss the euro zone’s debt crisis and recent developments in global financial markets.
The meeting was held as the yen hovered close to an 11-year high against the euro, adding to difficulties for Japan's export-reliant economy.
The single currency edged higher against the yen with EUR/JPY adding 0.49%, to hit 97.75.
Also Tuesday, data showed that tertiary industry activity in Japan declined more-than-expected in November, falling 0.8% after a 0.7% rise the previous month.
Analysts had expected tertiary industry activity to fall 0.3% in November.
Later in the day, the U.S. was to produce a report on manufacturing activity in New York State.
USD/JPY hit 76.58 during late Asian trade, the pair’s lowest since November 18; the pair subsequently consolidated at 76.65, sliding 0.18%.
The pair was likely to find support at 76.33, the low of September 28 and resistance at 76.95, the high of January 3.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
Investors shrugged off an earlier decision by ratings agency Standard and Poor’s to downgrade the euro zone’s bailout fund, the European Financial Stability Facility, by one notch to AA+.
S&P said the decision was inevitable following Friday’s downgrade of France and Austria, two of the EFSF's guarantors.
Reacting to the announcement, Japan’s Finance Minister Jun Azumi said that the FESF’s bonds remained an “attractive” investment for the country.
Earlier Tuesday, Bank of Japan Governor Masaaki Shirakawa met with Prime Minister Yoshihiko Noda to discuss the euro zone’s debt crisis and recent developments in global financial markets.
The meeting was held as the yen hovered close to an 11-year high against the euro, adding to difficulties for Japan's export-reliant economy.
The single currency edged higher against the yen with EUR/JPY adding 0.49%, to hit 97.75.
Also Tuesday, data showed that tertiary industry activity in Japan declined more-than-expected in November, falling 0.8% after a 0.7% rise the previous month.
Analysts had expected tertiary industry activity to fall 0.3% in November.
Later in the day, the U.S. was to produce a report on manufacturing activity in New York State.