Investing.com - The dollar rose against the yen on Monday after European finance officials agreed to provide EUR100 billion in assistance to Spain to help the country recapitalize its banks.
In Asian trading on Monday, USD/JPY hit 79.63, up 0.22%, up from a low of 79.40 and off a high of 79.72.
Support for the unit was seen at 79.40, the earlier low, and resistance seen at 79.73, the high of June 8.
Spain has become the fourth eurozone country to seek emergency lending, following Greece, Portugal and Ireland.
The country had been feeling increasing strain to prop up its banking sector, which has sent yields in Spanish government debt auctions spiking to well over 6% and the euro weakening against the dollar.
Rating’s agency Fitch slashed Spain's credit rating by three notches to triple-B on Friday and warned further cuts could come if the country fails to stabilize its banking sector.
Yet weekend news that eurozone countries have agreed to assist Spain sparked relief demand for the euro and sent reserve currencies such as the yen and dollar tumbling.
Soaring equities markets in Asia sent the yen falling even further against the greenback.
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 2.17%, while Japan’s Nikkei 225 Index was up 2.00%.
Australian markets were closed on holiday
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.76% and trading at 123.85 and EUR/JPY up 1.12% and trading at 100.58.
On Monday in the eurozone, France will publish its latest industrial production figures, a key gauge of economic health.
In the U.S., Federal Reserve Bank of Chicago President Charles Evans is due to speak in public,
Japan will release manufacturing data as well as preliminary data on machine tool orders.
Bank of Japan Governor Masaaki Shirakawa is due to appear in public as well.
In Asian trading on Monday, USD/JPY hit 79.63, up 0.22%, up from a low of 79.40 and off a high of 79.72.
Support for the unit was seen at 79.40, the earlier low, and resistance seen at 79.73, the high of June 8.
Spain has become the fourth eurozone country to seek emergency lending, following Greece, Portugal and Ireland.
The country had been feeling increasing strain to prop up its banking sector, which has sent yields in Spanish government debt auctions spiking to well over 6% and the euro weakening against the dollar.
Rating’s agency Fitch slashed Spain's credit rating by three notches to triple-B on Friday and warned further cuts could come if the country fails to stabilize its banking sector.
Yet weekend news that eurozone countries have agreed to assist Spain sparked relief demand for the euro and sent reserve currencies such as the yen and dollar tumbling.
Soaring equities markets in Asia sent the yen falling even further against the greenback.
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 2.17%, while Japan’s Nikkei 225 Index was up 2.00%.
Australian markets were closed on holiday
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.76% and trading at 123.85 and EUR/JPY up 1.12% and trading at 100.58.
On Monday in the eurozone, France will publish its latest industrial production figures, a key gauge of economic health.
In the U.S., Federal Reserve Bank of Chicago President Charles Evans is due to speak in public,
Japan will release manufacturing data as well as preliminary data on machine tool orders.
Bank of Japan Governor Masaaki Shirakawa is due to appear in public as well.