Investing.com - The U.S. dollar fell to a two-and-a-half month low against the yen on Tuesday, as Monday’s mixed U.S. economic data weighed on the greenback while the yen remained supported by recent easing steps announced by the Bank of Japan.
USD/JPY hit 79.64 during early European trade, the pair’s lowest since February 21; the pair subsequently consolidated at 79.71, declining 0.15%.
The pair was likely to find short term support at 79.35, the low of February 20 and resistance at 80.38, Monday’s high.
The dollar came under pressure after a report showed on Monday that a purchasing managers’ index for Chicago fell to 56.2 in April, the lowest level since November 2009, from a reading of 62.2 the previous month.
Analysts had expected the PMI to fall to 60.9 in April.
The U.S. Bureau of Economic Analysis said personal spending rose 0.3% in March, below expectations for a 0.4% gain.
Meanwhile, the yen remained supported after new easing measures announced by the BoJ fell short of some market expectations.
Last week, the bank said it will increase the size of its asset purchase fund by JPY5 trillion, while a program to provide loans to banks was cut back by JPY5 trillion. Economists had expected an increase of as much JPY10 trillion to the nation’s stimulus program.
The safe haven yen also found support after data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the euro zone.
Elsewhere, the yen was steady against the euro with EUR/JPY inching 0.01% lower, to hit 105.66.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.
USD/JPY hit 79.64 during early European trade, the pair’s lowest since February 21; the pair subsequently consolidated at 79.71, declining 0.15%.
The pair was likely to find short term support at 79.35, the low of February 20 and resistance at 80.38, Monday’s high.
The dollar came under pressure after a report showed on Monday that a purchasing managers’ index for Chicago fell to 56.2 in April, the lowest level since November 2009, from a reading of 62.2 the previous month.
Analysts had expected the PMI to fall to 60.9 in April.
The U.S. Bureau of Economic Analysis said personal spending rose 0.3% in March, below expectations for a 0.4% gain.
Meanwhile, the yen remained supported after new easing measures announced by the BoJ fell short of some market expectations.
Last week, the bank said it will increase the size of its asset purchase fund by JPY5 trillion, while a program to provide loans to banks was cut back by JPY5 trillion. Economists had expected an increase of as much JPY10 trillion to the nation’s stimulus program.
The safe haven yen also found support after data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the euro zone.
Elsewhere, the yen was steady against the euro with EUR/JPY inching 0.01% lower, to hit 105.66.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.