Investing.com - The dollar was higher against the yen on Monday, following strong gains in Japanese equities markets as news that Tokyo won the bid to host the 2020 Olympics boosted market sentiment.
USD/JPY hit 100.11 during late Asian trade, the session high; the pair subsequently consolidated at 99.63, gaining 0.53%.
The pair was likely to find support at 99.16, the low of September 3 and resistance at 100.21, Friday’s high.
Japan’s Nikkei rallied amid expectations that spending and construction activity in preparation for the 2020 Olympic Games will further help boost Japan's economic recovery in the coming years.
Improved trade data out of China over the weekend added to indications that the world’s second largest economy is recovering from a slowdown. Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.
Data on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.
The yen was little changed after revised data showed that Japan’s economy expanded by 0.9% in the second quarter, bringing the annualized rate of growth to 3.8%, compared with a preliminary reading of 2.6%. The initial estimate for quarter on quarter growth was 0.6%.
The dollar’s gain were held in check after the latest U.S. nonfarm payrolls report came in below expectations on Friday, dampening expectations that the Federal Reserve could start to pull back stimulus measures later this month.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.49% to 131.28.
The euro zone was to release data on investor confidence later in the day.
USD/JPY hit 100.11 during late Asian trade, the session high; the pair subsequently consolidated at 99.63, gaining 0.53%.
The pair was likely to find support at 99.16, the low of September 3 and resistance at 100.21, Friday’s high.
Japan’s Nikkei rallied amid expectations that spending and construction activity in preparation for the 2020 Olympic Games will further help boost Japan's economic recovery in the coming years.
Improved trade data out of China over the weekend added to indications that the world’s second largest economy is recovering from a slowdown. Data on Sunday showed that Chinese exports were 7.2% higher year-over-year in August, up from 5.1% in July, and imports were up 7%.
Data on Monday showed that Chinese consumer price inflation was up 2.6% year-on-year in August, in line with expectations.
The yen was little changed after revised data showed that Japan’s economy expanded by 0.9% in the second quarter, bringing the annualized rate of growth to 3.8%, compared with a preliminary reading of 2.6%. The initial estimate for quarter on quarter growth was 0.6%.
The dollar’s gain were held in check after the latest U.S. nonfarm payrolls report came in below expectations on Friday, dampening expectations that the Federal Reserve could start to pull back stimulus measures later this month.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.49% to 131.28.
The euro zone was to release data on investor confidence later in the day.