Investing.com – The U.S. dollar finally cracked through stiff psychological resistance at 100 against the Japanese yen during Thursday’s U.S. session and the good times have carried over to Friday’s Asian as the greenback is spotted higher against the Japanese currency.
In Asian trading Friday, USD/JPY rose 0.20% to 100.83. The pair was likely to find support at 98.47, the low of April 23 and resistance in the 101 area.
Japan’s Ministry of Finance said Friday that the country’s current account surplus rose to JPY1.25 trillion in March, topping economists’ expectations calling for a surplus of JPY1.22 trillion. That report could be one sign the country’s efforts to weaken the yen are having the desired impact and could be bolstering the world’s third-largest economy.
Just this year, the yen has fallen 14% against the greenback as Prime Minister Shinzo Abe and Bank of Japan Governor Haruhiko Kuroda have deployed extensive monetary easing aimed at depressing the yen while meeting target inflation of 2%.
The weak has roiled other export-dependent nations and South Korea fired back Thursday with a 25-basis point interest rate cut by the Bank of Korea. However, with interest rates still at 2.5%, South Korea has a long way to go to depress the won in similar fashion to what BoJ has done to the yen.
While concerns remain about the yen’s rapid fall, the currency is the worst performer among developed market currencies this year, Japanese finance chiefs say this is a necessary and healthy correction from the highs seen during the global financial crisis.
Elsewhere, AUD/JPY inched up 0.07% to 101.65 while EUR/JPY rose 0.16% to 131.49. NZD/JPY added 0.09% to 84.53.
In Asian trading Friday, USD/JPY rose 0.20% to 100.83. The pair was likely to find support at 98.47, the low of April 23 and resistance in the 101 area.
Japan’s Ministry of Finance said Friday that the country’s current account surplus rose to JPY1.25 trillion in March, topping economists’ expectations calling for a surplus of JPY1.22 trillion. That report could be one sign the country’s efforts to weaken the yen are having the desired impact and could be bolstering the world’s third-largest economy.
Just this year, the yen has fallen 14% against the greenback as Prime Minister Shinzo Abe and Bank of Japan Governor Haruhiko Kuroda have deployed extensive monetary easing aimed at depressing the yen while meeting target inflation of 2%.
The weak has roiled other export-dependent nations and South Korea fired back Thursday with a 25-basis point interest rate cut by the Bank of Korea. However, with interest rates still at 2.5%, South Korea has a long way to go to depress the won in similar fashion to what BoJ has done to the yen.
While concerns remain about the yen’s rapid fall, the currency is the worst performer among developed market currencies this year, Japanese finance chiefs say this is a necessary and healthy correction from the highs seen during the global financial crisis.
Elsewhere, AUD/JPY inched up 0.07% to 101.65 while EUR/JPY rose 0.16% to 131.49. NZD/JPY added 0.09% to 84.53.