Investing.com – The U.S. dollar eased off a six-month high against the yen on Thursday, after the Bank of Japan kept its interest rate unchanged but established a special lending facility for financial institutions in areas hit by the March 11 earthquake and tsunami.
USD/JPY retreated from 85.49, the pair’s highest since September 21, to hit 85.22 during early European trade, slipping 0.32%.
The pair was likely to find short-term support at 84.83, Wednesday’s low and resistance at 85.76, the high of September 21.
Earlier in the day, the BoJ said it will offer JPY1 trillion in one-year loans for businesses hurt by the nation’s record earthquake and held the benchmark overnight rate in a range of zero to 0.1%.
Japan’s economy is under “strong downward pressure” after the earthquake damaged production facilities and weakened the financial positions of companies, particularly small enterprises, the central bank said. Pressure will persist “for the time being” before the economy recovers, it added.
The BOJ injected a record amount of emergency cash into the banking system following the quake and doubled its asset-buying fund to 10 trillion yen on March 14.
The yen was also higher against the euro, with EUR/JPY shedding 0.64% to hit 121.72.
Later in the day, the U.S. was to publish a weekly report on initial jobless claims.
USD/JPY retreated from 85.49, the pair’s highest since September 21, to hit 85.22 during early European trade, slipping 0.32%.
The pair was likely to find short-term support at 84.83, Wednesday’s low and resistance at 85.76, the high of September 21.
Earlier in the day, the BoJ said it will offer JPY1 trillion in one-year loans for businesses hurt by the nation’s record earthquake and held the benchmark overnight rate in a range of zero to 0.1%.
Japan’s economy is under “strong downward pressure” after the earthquake damaged production facilities and weakened the financial positions of companies, particularly small enterprises, the central bank said. Pressure will persist “for the time being” before the economy recovers, it added.
The BOJ injected a record amount of emergency cash into the banking system following the quake and doubled its asset-buying fund to 10 trillion yen on March 14.
The yen was also higher against the euro, with EUR/JPY shedding 0.64% to hit 121.72.
Later in the day, the U.S. was to publish a weekly report on initial jobless claims.