Investing.com - The U.S. dollar rose to a three-week high against the yen on Thursday, as market sentiment waned after a downward revision of U.S. economic growth dampened hopes for recovery in the world’s second largest economy.
USD/JPY hit 78.18 during European afternoon trade, the pair’s highest since November 29; the pair subsequently consolidated at 78.18, climbing 0.16%.
The pair was likely to find support at 77.91, the low of December 14 and resistance at 78.40, the high of November 2.
Market sentiment was hit after official data showed that the U.S. economy grew at a slower rate than initially estimated during the third quarter.
In a report, the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 1.8% during the third quarter, down from a previous estimate of 2.0%.
Analysts had expected the second estimate of U.S. gross domestic product to remain unchanged at 2.0%.
The data primarily reflects a downward revision to personal consumption, which grew 1.6% compared to a previous estimate of 2.3%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The report came after data showing that the number of people who filed for unemployment assistance in the U.S. last week fell unexpectedly to 364,000, confounding expectations for a rise to 375,000.
Investors were also jittery earlier as concerns over the debt crisis in the euro zone persisted amid speculation of an imminent French downgrade.
Meanwhile, the yen was steady against the euro with EUR/JPY inching down 0.08%, to hit 101.93.
Earlier in the day, the Bank of Japan warned that the country's recovery has stalled as business sentiment deteriorated in the wake of weaker export demand, while Japan’s government lowered its real gross domestic product forecast to a 0.1% contraction from the 0.5% growth predicted previously.
USD/JPY hit 78.18 during European afternoon trade, the pair’s highest since November 29; the pair subsequently consolidated at 78.18, climbing 0.16%.
The pair was likely to find support at 77.91, the low of December 14 and resistance at 78.40, the high of November 2.
Market sentiment was hit after official data showed that the U.S. economy grew at a slower rate than initially estimated during the third quarter.
In a report, the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 1.8% during the third quarter, down from a previous estimate of 2.0%.
Analysts had expected the second estimate of U.S. gross domestic product to remain unchanged at 2.0%.
The data primarily reflects a downward revision to personal consumption, which grew 1.6% compared to a previous estimate of 2.3%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The report came after data showing that the number of people who filed for unemployment assistance in the U.S. last week fell unexpectedly to 364,000, confounding expectations for a rise to 375,000.
Investors were also jittery earlier as concerns over the debt crisis in the euro zone persisted amid speculation of an imminent French downgrade.
Meanwhile, the yen was steady against the euro with EUR/JPY inching down 0.08%, to hit 101.93.
Earlier in the day, the Bank of Japan warned that the country's recovery has stalled as business sentiment deteriorated in the wake of weaker export demand, while Japan’s government lowered its real gross domestic product forecast to a 0.1% contraction from the 0.5% growth predicted previously.