Yen Falls Amid Rising Concerns On Currency Intervention
May 14 2024 - 12:12AM
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The Japanese yen weakened against other major currencies in the
Asian session on Tuesday, as traders are concerned about the
Japanese government's intervention in currency markets to prop up
the yen.
Meanwhile, traders remain cautious ahead of key U.S. inflation
data, including producer and consumer price inflation, due later in
the day that could offer more clarity on the US Fed's interest rate
trajectory.
The report on U.S. producer price inflation is likely to be in
focus on Tuesday along with Fed Chair Jerome Powell's remarks
during a moderate discussion with De Nederlandsche Bank President
Klaas Knot.
In economic news, producer prices in Japan were up 0.3 percent
on month in April, the Bank of Japan said on Tuesday, accelerating
from 0.2 percent in March. On a yearly basis, producer prices rose
0.9 percent - unchanged from the previous month following an upward
revision from 0.8 percent. Export prices were up 0.4 percent on
month and 1.3 percent on year, the bank said, while import prices
fell 0.1 percent on month and 4.3 percent on year.
The safe-haven yen started falling against its major rivals form
May 3rd, 2024.
In the Asian trading today, the yen fell to more than 2-week
lows of 168.78 against the euro and 172.25 against the Swiss franc,
from yesterday's closing quotes of 168.61 and 172.06, respectively.
If the yen extends its downtrend, it is likely to find support
around 172.00 against the euro and 176.00 against the franc.
Against the pound and the U.S. dollar, the yen slipped to 2-week
lows of 196.50 and 156.51 from Monday's closing quotes of 196.23
and 156.24, respectively. The yen may test support near the 201.00
against the pound and 161.00 against the greenback.
Against the Australia and the New Zealand dollars, the yen
dropped to more than 2-week lows of 103.33 and 94.15 from
yesterday's closing quotes of 103.20 and 93.94, respectively. On
the downside, 105.00 against the aussie and 95.00 against the kiwi
are seen as the next support levels for the yen.
The yen edged down to 114.42 against the Canadian dollar, from
yesterday's closing value of 114.31. The next possible downside
target for the yen is seen around the 118.00 region.
Looking ahead, Germany's ZEW economic sentiment for May is due
to be released at 5:00 am ET in the European session.
In the New York session, U.S. NFIB business optimism index for
April, Canada new Motor vehicle sales and wholesale sales data for
March, U.S. PPI for April and U.S. Redbook report are slated for
release.
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