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Forex - Dollar lower against yen for second day

Published 02/20/2013, 03:30 AM
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Investing.com - The dollar fell against the yen for a second day on Wednesday amid signs of dissent within Japan’s government over Prime Minister Shinzo Abe’s push for more aggressive monetary easing steps.

USD/JPY hit 93.14 during late Asian trade, the pair’s lowest since February 15; the pair subsequently consolidated at 93.36, shedding 0.21%.

The pair was likely to find support at 92.21, the low of February 15 and resistance at 93.95, Tuesday’s high.

On Tuesday, Japan’s Finance Minister Taro Aso said the government is not considering buying foreign bonds as a part of its monetary easing plan, one day after Prime Minister Abe said the idea was one option for monetary easing.

Investors were awaiting an announcement on nominees to replace outgoing Bank of Japan Governor Masaaki Shirakawa, whose policies the prime minister has criticized for not going far enough to combat deflation.

The yen was little changed after official data showed that Japan’s trade deficit rose to a record JPY1.629 trillion in January. However, the data showed that exports were up 6.4% year-on-year, the first increase in eight months.

The yen was little changed against the euro, with EUR/JPY inching up 0.02% to 125.29.

The Federal Reserve was to release the minutes of its most recent policy meeting later in the trading day, while the U.S. was also to release official data on building permits and housing starts.



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