Yen Falls Amid Risk Appetite
June 03 2024 - 12:11AM
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The Japanese yen weakened against other major currencies in the
Asian session on Monday amid risk appetite, as investors remain
cautiously optimistic on bets the U.S. Fed will likely cut interest
rates in September after data showed the U.S. consumer price
inflation came in line with estimates in April, while core consumer
prices edged up slightly less than expected.
Gains among iron miners, energy and financial stocks, also led
to the upturn of investor sentiment.
In economic news, the manufacturing sector in Japan bounced back
up into expansion territory in May, the latest survey from Jibun
Bank revealed on Monday with a manufacturing PMI score of 50.4.
That's up from 49.6 in April and it moves above the boom-or-bust
line of 50 that separates expansion from contraction.
In the Asian trading today, the yen slipped to 5-week lows of
170.89 against the euro and 174.69 against the Swiss franc, from
Friday's closing quotes of 170.64 and 174.23, 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 dropped to a
5-day low of 200.65 and a 4-day low of 157.48 from last week's
closing quotes of 200.44 and 157.23, respectively. On the downside,
202.00 against the pound and 162.00 against the greenback are seen
as the next support levels for the yen.
Against Australia, the New Zealand and the Canadian dollars, the
yen slipped to a 5-day low of 104.73, a 17-year low of 96.81 and
5-week low of 115.54 from last week's closing quotes of 104.65,
96.62 and 115.36, respectively. The yen may test support near
106.00 against the aussie, 98.00 against the kiwi and 118.00
against the loonie.
Looking ahead, manufacturing PMI reports for May from various
European economies and U.K. are due to be released in the European
session.
In the New York session, U.S. and Canada manufacturing PMI for
May and U.S. construction spending data for April are slated for
release.
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