Investing.com - The broadly weaker U.S. dollar eased back from a one-month high against the yen on Wednesday, but losses were limited after ratings agency Moody’s decided not to cut Spain’s credit rating, supporting risk appetite.
USD/JPY hit 78.62 during European morning trade, the session low; the pair subsequently consolidated at 78.75, slipping 0.16%.
The pair was likely to find support at 78.62, the session low and resistance at 78.95, Tuesday’s high and a one-month high.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and the European Central Bank’s bond buying program would ensure that Madrid had continued access to credit markets.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Market sentiment has been boosted in recent weeks by hopes that Spain will soon request a bailout from its euro zone partners, but uncertainty over the timing of a request and what form a bailout would take has persisted.
The yen remained under pressure amid speculation that the Bank of Japan may ease monetary policy further at its policy meeting at the end of this month.
The euro was higher against the yen, with EUR/JPY up 0.29% to 103.26.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
USD/JPY hit 78.62 during European morning trade, the session low; the pair subsequently consolidated at 78.75, slipping 0.16%.
The pair was likely to find support at 78.62, the session low and resistance at 78.95, Tuesday’s high and a one-month high.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and the European Central Bank’s bond buying program would ensure that Madrid had continued access to credit markets.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Market sentiment has been boosted in recent weeks by hopes that Spain will soon request a bailout from its euro zone partners, but uncertainty over the timing of a request and what form a bailout would take has persisted.
The yen remained under pressure amid speculation that the Bank of Japan may ease monetary policy further at its policy meeting at the end of this month.
The euro was higher against the yen, with EUR/JPY up 0.29% to 103.26.
Later in the day, the U.S. was to publish government data on building permits and housing starts.