Investing.com - The U.S. dollar fell to a one-week low against the yen on Tuesday, after fresh easing steps by the Bank of Japan disappointed market expectations for more aggressive measures.
USD/JPY hit 79.28 during late Asian trade, the pair’s lowest since October 22; the pair subsequently consolidated at 79.47, shedding 0.39%.
The pair was likely to find support at 79.13, the low of October 19 and resistance at 80.12, the session high.
The BoJ increased the size of its asset purchase program by JPY11 trillion at Tuesday’s policy meeting, amid concerns over the deteriorating economic outlook and growing political pressure to step up measures to combat deflation.
In a joint statement with the central bank, Economics Minister Seiji Maehara said the new measures were an important step towards defeating deflation.
The yen turned higher against the dollar following the decision, after last week’s announcement of a stimulus package by the government fueled expectations of even more aggressive steps.
Earlier Tuesday, official data showed that industrial production in Japan dropped 4.1% in September, the biggest fall since the March 2011 earthquake.
The yen was little changed against the euro, with EUR/JPY dipping 0.07% to 102.89.
The single currency found support after official data showed that the Spanish economy contracted by 0.3% in the third quarter, compared to expectations for a 0.4% contraction.
USD/JPY hit 79.28 during late Asian trade, the pair’s lowest since October 22; the pair subsequently consolidated at 79.47, shedding 0.39%.
The pair was likely to find support at 79.13, the low of October 19 and resistance at 80.12, the session high.
The BoJ increased the size of its asset purchase program by JPY11 trillion at Tuesday’s policy meeting, amid concerns over the deteriorating economic outlook and growing political pressure to step up measures to combat deflation.
In a joint statement with the central bank, Economics Minister Seiji Maehara said the new measures were an important step towards defeating deflation.
The yen turned higher against the dollar following the decision, after last week’s announcement of a stimulus package by the government fueled expectations of even more aggressive steps.
Earlier Tuesday, official data showed that industrial production in Japan dropped 4.1% in September, the biggest fall since the March 2011 earthquake.
The yen was little changed against the euro, with EUR/JPY dipping 0.07% to 102.89.
The single currency found support after official data showed that the Spanish economy contracted by 0.3% in the third quarter, compared to expectations for a 0.4% contraction.