Forex - USD/JPY plunges to new 15-year low after G20

Published 10/25/2010, 04:44 AM
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Investing.com – The U.S. dollar was down against the yen on Monday, plunging to a new 15-year low after leaders from the G20 group of nations agreed on the need to avoid "competitive devaluation" of currencies and move toward market-based exchange-rate systems.

USD/JPY hit 80.42 during European morning trade, the pair’s lowest since April 19, 1995; the pair subsequently consolidated at 80.54, plunging 1.00%.

The pair was likely to find support at 79.75, the low of April 19, 1995 and the all-time low and resistance at 81.50, last Friday’s high.

Earlier in the day, Japan’s Ministry of Finance said that the country’s trade surplus rose more-than-expected in September, the first year-on-year rise in two months, rising 54.0% to JPY 797.0 billion from a year earlier, as exports rose more-than-expected.

The report said that exports were up 14.4% to JPY 5.843 trillion but the pace of the increase was down for the seventh consecutive month.

The yen was also up against the euro, with EUR/JPY shedding 0.47% to hit 112.99.

At their weekend meeting in South Korea the G20 industrial and emerging nations agreed to try to maintain trade balances—which are both a reflection of and a determinant of exchange rates—at "sustainable levels."

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