Investing.com - The U.S. dollar dropped to a three-month low against the yen on Tuesday, as demand for the greenback was hit by speculation that the Federal Reserve may embark on a third round of stimulus measures following its policy meeting later this week.
USD/JPY hit 77.84 during European afternoon trade, the pair’s lowest since June 1; the pair subsequently consolidated at 77.86, shedding 0.53%.
The pair was likely to find support at 77.65, the low of June 1 and resistance at 78.28, the session high.
The dollar came under selling pressure amid speculation that the U.S. central bank may implement a third round of quantitative easing after its policy meeting, which concludes on Thursday.
Government data on Friday showed that the U.S. economy added fewer-than-expected jobs in August, increasing the likelihood that the Fed will act to strengthen the U.S. economic recovery.
The broadly stronger yen was also higher against the euro, with EUR/JPY slipping 0.17% to 99.72.
Demand for the single currency continued to be underpinned by expectations that Germany’s constitutional court would find that the euro zone’s new bailout fund, the European Stability Mechanism, was not a violation of the German constitution in a ruling to be delivered on Wednesday.
The euro rose to the session high against the dollar and the yen earlier, after the court rejected an application by a German MP to postpone the ruling until the European Central Bank altered its bond-buying program.
Portugal was to announce the details of the latest review of its EUR78 billion bailout program later Tuesday. The country has so far managed to achieve the targets set out by the Troika but evidence of a recent slowdown in economic growth could hamper planned austerity measures.
USD/JPY hit 77.84 during European afternoon trade, the pair’s lowest since June 1; the pair subsequently consolidated at 77.86, shedding 0.53%.
The pair was likely to find support at 77.65, the low of June 1 and resistance at 78.28, the session high.
The dollar came under selling pressure amid speculation that the U.S. central bank may implement a third round of quantitative easing after its policy meeting, which concludes on Thursday.
Government data on Friday showed that the U.S. economy added fewer-than-expected jobs in August, increasing the likelihood that the Fed will act to strengthen the U.S. economic recovery.
The broadly stronger yen was also higher against the euro, with EUR/JPY slipping 0.17% to 99.72.
Demand for the single currency continued to be underpinned by expectations that Germany’s constitutional court would find that the euro zone’s new bailout fund, the European Stability Mechanism, was not a violation of the German constitution in a ruling to be delivered on Wednesday.
The euro rose to the session high against the dollar and the yen earlier, after the court rejected an application by a German MP to postpone the ruling until the European Central Bank altered its bond-buying program.
Portugal was to announce the details of the latest review of its EUR78 billion bailout program later Tuesday. The country has so far managed to achieve the targets set out by the Troika but evidence of a recent slowdown in economic growth could hamper planned austerity measures.