Forex - USD/JPY hits daily low as Korean jitters dent risk appetite

Published 11/24/2010, 03:58 AM
USD/JPY
-
EUR/JPY
-
Investing.com – The U.S. dollar was down against the yen on Wednesday, falling to a daily low as ongoing tensions on the Korean peninsula after North Korea’s shelling of a South Korean island supported safe haven buying.

USD/JPY hit 82.95 during early European trade, the daily low; the pair subsequently consolidated at 82.99, shedding 0.19%.

The pair was likely to find support at 82.39 the low of November 15 and resistance at 83.84, Tuesday’s high.

While Tuesday's artillery attack was one of the most serious incidents on the peninsula since the end of the Korean War in 1953, Seoul’s measured response blunted the impact of the incident on financial markets.

Separately, in the euro zone fears that Ireland’s financial crisis would spread to other indebted euro zone counterparts such as Portugal or Spain continued to exacerbate risk aversion.

On Tuesday, officials from the European Union urged Ireland to adopt an austerity budget in time to access a rescue package from the EU and the International Monetary Fund as a deepening political crisis in the country threatened to derail the financial bailout.

Also Tuesday, rating’s agency Standard and Poor's downgraded its sovereign rating on Ireland.

The yen was also up against the euro, with EUR/JPY shedding 0.34% to hit 110.78.

Later in the day, the U.S. was to release a slew of data ahead of the Thanksgiving holiday, with a weekly report on initial jobless claims as well as data on personal spending, durable goods orders and new home sales. The country was also to publish revised data on consumer sentiment and inflation expectations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.