Investing.com – The U.S. dollar was down against the yen on Tuesday, falling to hit a daily low as speculation China will implement fresh measures to curb inflation and Europe’s debt woes will worsen boosted demand for safer assets.
USD/JPY hit 83.90 during early European trade, the daily low; the pair subsequently consolidated at 83.97, shedding 0.32%.
The pair was likely to find support at 83.55, last Friday’s low and resistance at 84.18, Monday’s high.
Earlier in the day, the China Daily quoted Zhong Jiyin, an economist at the Chinese Academy of Social Sciences, as saying his nation needs to raise interest rates by 2%. China’s recent increases in the reserve requirement ratio won’t be enough to reverse excessive liquidity in the system, Zhong said.
Elsewhere, in the euro zone the cost of insuring Spanish and Portuguese sovereign debt against default soared to euro-lifetime highs on Monday after an auction of Italian bonds produced lackluster demand, highlighting the lack of confidence in the deal to help contain Ireland's crisis.
The yen was also up against the euro, with EUR/JPY shedding 0.57% to hit 109.96.
Also Tuesday, official data showed that Japan’s industrial production decreased less-than-expected in October, while the unemployment rate rose unexpectedly.
USD/JPY hit 83.90 during early European trade, the daily low; the pair subsequently consolidated at 83.97, shedding 0.32%.
The pair was likely to find support at 83.55, last Friday’s low and resistance at 84.18, Monday’s high.
Earlier in the day, the China Daily quoted Zhong Jiyin, an economist at the Chinese Academy of Social Sciences, as saying his nation needs to raise interest rates by 2%. China’s recent increases in the reserve requirement ratio won’t be enough to reverse excessive liquidity in the system, Zhong said.
Elsewhere, in the euro zone the cost of insuring Spanish and Portuguese sovereign debt against default soared to euro-lifetime highs on Monday after an auction of Italian bonds produced lackluster demand, highlighting the lack of confidence in the deal to help contain Ireland's crisis.
The yen was also up against the euro, with EUR/JPY shedding 0.57% to hit 109.96.
Also Tuesday, official data showed that Japan’s industrial production decreased less-than-expected in October, while the unemployment rate rose unexpectedly.