Investing.com – The U.S. dollar tumbled to a fresh 15-year low against the yen on Thursday, as selling pressure on the dollar intensified following a surprise decision by Singapore’s central bank to tighten monetary policy.
USD/JPY hit 81.04 during European morning trade, the pair’s lowest since April 20 1995; the pair subsequently consolidated at 81.12, tumbling 0.83%.
The pair was likely to find support at 79.75, the low of April 19, 1995 and the all time low and resistance at 82.34, Wednesday’s high.
Earlier Thursday, the Monetary Authority of Singapore tightened policy, broadening the range of the Singapore dollar's trading band. At the same time, the authorities said they were maintaining a policy of "modest and gradual appreciation" of the local dollar.
MAS sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.14% to hit 114.35.
Earlier in the day, Japanese Finance Minister Yoshihiko Noda refused to comment on the yen's sharp appreciation.On Tuesday, Minister Noda said his government would take "bold action, which includes intervention, if needed.”
USD/JPY hit 81.04 during European morning trade, the pair’s lowest since April 20 1995; the pair subsequently consolidated at 81.12, tumbling 0.83%.
The pair was likely to find support at 79.75, the low of April 19, 1995 and the all time low and resistance at 82.34, Wednesday’s high.
Earlier Thursday, the Monetary Authority of Singapore tightened policy, broadening the range of the Singapore dollar's trading band. At the same time, the authorities said they were maintaining a policy of "modest and gradual appreciation" of the local dollar.
MAS sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.
The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.14% to hit 114.35.
Earlier in the day, Japanese Finance Minister Yoshihiko Noda refused to comment on the yen's sharp appreciation.On Tuesday, Minister Noda said his government would take "bold action, which includes intervention, if needed.”