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Forex - Yen slightly weaker in Asia on IP data, Yellen views eyed

Published 03/29/2016, 07:53 PM
Updated 03/29/2016, 07:56 PM
Yen a tad weaker in Asia
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Investing.com - The yen was slightly weaker in Asia on Wednesday as provisional industrial production estimates came in weaker than seen and overnight comments from Fed chief Janet Yellen were assessed.

USD/JP changed hands at 112.72, up 0.02%, while AUD/USD rose 0.14% to 0.7638.

In Japan, provisional industrial production figures for February fell 6.2%, more than the expected drop of 6.0% month-on-month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.85% to 95.17.

Overnight, the dollar remained moderately lower against the other major currencies on Tuesday, despite the release of upbeat U.S. consumer confidence data as investors saw Yellen's remarks in a speech as dovish in tone.

In her first comments since the Fed decided to hold rates steady two weeks ago, Yellen said inflation has not yet proven durable against the backdrop of looming global risks.

"Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy," she said of the Fed's policy-making Federal Open Market Committee.

The Conference Board said its index of consumer confidence rose to 96.2 this month from a reading of 94.0 in February, whose figure was revised from a previously reported 92.2. Analysts expected the index to increase to 94.0 in March.

The yen weakened after Japanese Prime Minister Shinzo Abe said earlier Tuesday that he will proceed with a planned sales tax hike next April unless the economy is hit by a severe shock. Many analysts had expected Abe to delay the planned tax hike which could threaten Japan’s fragile economic recovery.

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