Investing.com - The U.S. dollar moved lower against the Japanese yen in Asian trade Wednesday, as fears over European debt were eased following remarks by Germany’s leader that a response to Greece’s debt problems was on track.
In mid-day Asian trade USD/JPY hit 76.87, the pair’s lowest since Tuesday ; the pair subsequently consolidated at 76.93, dropping 0.02%.
The pair was likely to find support at 76.41, the low of August 31, and resistance at 77.58 Monday’s high.
Earlier Tuesday, German Chancellor Angela Merkel expressed confidence that rescue measures to address Greek debt were progressing, and ejected the notion that Greek bankruptcy would provide a quick solution to the euro-zone’s debt crisis.
Europe was doing everything it could to “avoid disorderly processes” Merkel added.
Merkel was due to speak later Wednesday with French President Nicolas Sarkozy and Greek Prime Minister George Papandreou, while U.S. Treasury Secretary Timothy Geithner was scheduled to meet with European Union finance ministers later this week.
U.S. stocks responded positively as Wall Street posted its second consecutive day of gains. The Dow Jones Industrial Average gained 0.4% to 11,105.85, the Nasdaq Composite Index rose 1.5% to 2,532.15, and the S&P 500 climbed 0.9% to close at 1,172.87.
Meanwhile, the yen moved higher against both the euro and the British pound with EUR/JPY down 0.17% to hit 105.04, and GBP/JPY falling 0.02% to hit 121.35.
Monthly industrial production figures were due for release from Japan’s Ministry of Economy, Trade and Industry later Wednesday.