Investing.com - The Japanese yen rebounded to gain against the U.S. dollar in Asian trade Wednesday, following a brief dip as the U.S. Federal Reserve vowed to maintain its easy money policy.
In early Asian trade USD/JPY hit 77.31, the pair’s highest since Monday; the pair subsequently consolidated at 76.88, falling 0.11%.
The pair was likely to find support at 76.79, last Wednesday’s low, and resistance at 77.71, Monday’s high.
In the Federal Open Market Committee’s Tuesday meeting the U.S. Central Bank voted to extend ultra-low interest rates at 0.25% until at least the middle of 2013, citing concerns on the prospects for growth in the U.S. economy.
Short-term treasury bonds fell to record lows, as investors forecast a return to the bond market for the Fed after less than a month of absence from its last big program of purchases.
The Federal Reserve said it expected a much slower pace of recovery than what was forecast during its last meeting in late June. It added that the unemployment rate was forecast to fall only gradually from the July level of 9.1%, and that “Downside risks to the economic outlook have increased.”
Wednesday Japan’s Finance Minister Yoshihiko Noda said he would continue to watch markets carefully as the yen’s persistent strength represents a deterrent to the nation’s economic recovery following March’s devastating earthquake and tsunamis.
Market expectations were for an additional yen weakening move by the BOJ if USD/JPY falls to 77.10, the trading point that precipitated last week’s currency market intervention by Japan’s central bank.
Meanwhile the yen moved higher against both the euro and the British pound with EUR/JPY down 0.27% to hit 110.32, and GBP/JPY falling 0.28% to hit 125.20.
Figures on monthly core machinery orders were due out later Wednesday from Japan’s Economic and Social Research Institute.
In early Asian trade USD/JPY hit 77.31, the pair’s highest since Monday; the pair subsequently consolidated at 76.88, falling 0.11%.
The pair was likely to find support at 76.79, last Wednesday’s low, and resistance at 77.71, Monday’s high.
In the Federal Open Market Committee’s Tuesday meeting the U.S. Central Bank voted to extend ultra-low interest rates at 0.25% until at least the middle of 2013, citing concerns on the prospects for growth in the U.S. economy.
Short-term treasury bonds fell to record lows, as investors forecast a return to the bond market for the Fed after less than a month of absence from its last big program of purchases.
The Federal Reserve said it expected a much slower pace of recovery than what was forecast during its last meeting in late June. It added that the unemployment rate was forecast to fall only gradually from the July level of 9.1%, and that “Downside risks to the economic outlook have increased.”
Wednesday Japan’s Finance Minister Yoshihiko Noda said he would continue to watch markets carefully as the yen’s persistent strength represents a deterrent to the nation’s economic recovery following March’s devastating earthquake and tsunamis.
Market expectations were for an additional yen weakening move by the BOJ if USD/JPY falls to 77.10, the trading point that precipitated last week’s currency market intervention by Japan’s central bank.
Meanwhile the yen moved higher against both the euro and the British pound with EUR/JPY down 0.27% to hit 110.32, and GBP/JPY falling 0.28% to hit 125.20.
Figures on monthly core machinery orders were due out later Wednesday from Japan’s Economic and Social Research Institute.