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Forex - Yen hits fresh 5-week high against dollar amid global outlook fears

Published 06/24/2010, 07:11 AM
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Investing.com – The yen hit a fresh 5-week high against the U.S. dollar on Thursday, amid concerns over the global outlook as the cost of protecting Greek government debt against default rose.

USD/JPY hit 89.49 during European morning trade, its lowest since May 25; the pair subsequently consolidated at 89.53, shedding 0.28%. The pair was likely to find support at 88.96, the low of May 20, and resistance at 90.58, Wednesday’s high.

Sentiment was undermined late Wednesday, after the U.S. Federal Reserve's policy-making arm, the Federal Open Market Committee, indicated that the euro zone debt crisis could undermine U.S. economic growth, while announcing its benchmark interest rate.

The Fed held the benchmark interest rate steady at a record low.

The yen was also up against the euro, with EUR/JPY shedding 0.5% to hit 110.0.

Also Wednesday, Japan’s Finance Ministry said the country’s export growth slowed for a third month in May, indicating a slowdown in the economy. Exports rose 32.1% from a year earlier, but were down on April’s figure of 40.4%.

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