Investing.com – The yen edged higher against the U.S. dollar on Wednesday, as concerns over contamination from Japan’s stricken nuclear power plant and ongoing unrest in the Middle East and North Africa supported safe haven demand.
USD/JPY hit 80.70 during early European trade, the pair’s lowest since Friday; the pair subsequently consolidated at 80.81, slipping 0.18%.
The pair was likely to find support at 79.06, last Friday’s low and resistance at 81.31, Monday’s high.
Earlier in the day, the Tokyo metropolitan government advised families against allowing infants to drink tap water after higher-than-permitted levels of radioactive iodine were detected.
Elsewhere, in the Middle East political turmoil continued to escalate after Syrian troops opened fire on protesters and Yemen's president warned that the country would slip into civil war if he was forced to resign.
However, the yen’s gains were limited amid concerns that sharp rises could prompt Japan's Ministry of Finance to order intervention to weaken the currency.
The yen was also higher against the euro, with EUR/JPY shedding 0.25% to hit 114.67.
Also Wednesday, a government report estimated the damage from Japan’s March 11 record earthquake and tsunami at as much as JPY25 trillion, or USD309 billion. Wider implications on the economy, including how radiation will affect food and water supply, were not included in the estimate.
USD/JPY hit 80.70 during early European trade, the pair’s lowest since Friday; the pair subsequently consolidated at 80.81, slipping 0.18%.
The pair was likely to find support at 79.06, last Friday’s low and resistance at 81.31, Monday’s high.
Earlier in the day, the Tokyo metropolitan government advised families against allowing infants to drink tap water after higher-than-permitted levels of radioactive iodine were detected.
Elsewhere, in the Middle East political turmoil continued to escalate after Syrian troops opened fire on protesters and Yemen's president warned that the country would slip into civil war if he was forced to resign.
However, the yen’s gains were limited amid concerns that sharp rises could prompt Japan's Ministry of Finance to order intervention to weaken the currency.
The yen was also higher against the euro, with EUR/JPY shedding 0.25% to hit 114.67.
Also Wednesday, a government report estimated the damage from Japan’s March 11 record earthquake and tsunami at as much as JPY25 trillion, or USD309 billion. Wider implications on the economy, including how radiation will affect food and water supply, were not included in the estimate.