Investing.com - The U.S. dollar was steady against the yen on Tuesday, as investors were cautious after European ministers rejected an offer to restructure Greece’s debt, while the Bank of Japan left its benchmark interest rate and monetary policy unchanged.
USD/JPY hit 77.05 during late Asian trade, the daily high; the pair subsequently consolidated at 77.05, inching up 0.02%.
The pair was likely to find support at 76.86, Monday’s low and resistance at 77.23, the high of January 5.
Following a meeting in Brussels, euro zone ministers called on private bond holders to drop demands that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.
Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swap to be struck "within days".
Earlier Tuesday, the BOJ left its interest rate close to zero and its monetary policy unchanged for the third month in row, but reduced its growth forecasts for the current and coming fiscal years.
The central bank lowered its forecast for real gross domestic product for the fiscal year ending in March to a contraction of 0.4% from a 0.3% growth projection it made in October. For the next fiscal year, the BOJ sees growth of 2.0%, down from the previous forecast for 2.2% growth.
Meanwhile, the bank continued to cite the euro zone’s sovereign debt crisis as a key factor that could pose downside risks for the global economy.
The yen was moderately lower against the euro with EUR/JPY adding 0.15%, to hit 100.36.
EU finance ministers were to hold discussions in Brussels throughout the day.
USD/JPY hit 77.05 during late Asian trade, the daily high; the pair subsequently consolidated at 77.05, inching up 0.02%.
The pair was likely to find support at 76.86, Monday’s low and resistance at 77.23, the high of January 5.
Following a meeting in Brussels, euro zone ministers called on private bond holders to drop demands that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.
Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said he expected a deal on the debt swap to be struck "within days".
Earlier Tuesday, the BOJ left its interest rate close to zero and its monetary policy unchanged for the third month in row, but reduced its growth forecasts for the current and coming fiscal years.
The central bank lowered its forecast for real gross domestic product for the fiscal year ending in March to a contraction of 0.4% from a 0.3% growth projection it made in October. For the next fiscal year, the BOJ sees growth of 2.0%, down from the previous forecast for 2.2% growth.
Meanwhile, the bank continued to cite the euro zone’s sovereign debt crisis as a key factor that could pose downside risks for the global economy.
The yen was moderately lower against the euro with EUR/JPY adding 0.15%, to hit 100.36.
EU finance ministers were to hold discussions in Brussels throughout the day.