Investing.com - The U.S. dollar slid against the yen on Monday, as safe haven demand found support after nine euro zone countries, including France, were downgraded by ratings agency Standard & Poor’s on Friday.
USD/JPY hit 76.80 during late Asian trade, the daily low; the pair subsequently consolidated at 76.80, shedding 0.22%.
The pair was likely to find support at 76.65, the low of January 13 and resistance at 77.14, the high of November 16.
Sentiment was hit after S&P cut ratings on Italy, Spain, Cyprus and Portugal by two notches and downgraded Malta, Slovakia and Slovenia by one level. Germany kept its triple-A rating.
The ratings agency also said it would decide shortly whether to do the same for the euro zone’s bailout fund, the European Financial Stability Facility.
European Central Bank policymaker Ewald Nowotny said on Sunday the central bank would do all it could to calm the situation after the downgrade.
In Japan, official data showed earlier that core machinery orders rose far more-than-expected in November, surging 14.8% after a 6.9% decline the previous month.
Analysts had expected core machinery orders to rise 5.8% in November.
Meanwhile, the yen was trading close to an eleven-year high against the euro with EUR/JPY declining 0.24%, to hit 97.33.
Earlier Monday, Japanese Finance Minister Jun Azumi said he was concerned about the weaker euro, saying currency moves have been “a little rapid.”
Markets in the U.S. remained closed for Martin Luther King Day.
USD/JPY hit 76.80 during late Asian trade, the daily low; the pair subsequently consolidated at 76.80, shedding 0.22%.
The pair was likely to find support at 76.65, the low of January 13 and resistance at 77.14, the high of November 16.
Sentiment was hit after S&P cut ratings on Italy, Spain, Cyprus and Portugal by two notches and downgraded Malta, Slovakia and Slovenia by one level. Germany kept its triple-A rating.
The ratings agency also said it would decide shortly whether to do the same for the euro zone’s bailout fund, the European Financial Stability Facility.
European Central Bank policymaker Ewald Nowotny said on Sunday the central bank would do all it could to calm the situation after the downgrade.
In Japan, official data showed earlier that core machinery orders rose far more-than-expected in November, surging 14.8% after a 6.9% decline the previous month.
Analysts had expected core machinery orders to rise 5.8% in November.
Meanwhile, the yen was trading close to an eleven-year high against the euro with EUR/JPY declining 0.24%, to hit 97.33.
Earlier Monday, Japanese Finance Minister Jun Azumi said he was concerned about the weaker euro, saying currency moves have been “a little rapid.”
Markets in the U.S. remained closed for Martin Luther King Day.