Yen Weakens After Japanese FinMin Aso's Remarks
January 15 2018 - 9:22PM
RTTF2
The Japanese yen declined against its major rivals in the Asian
session on Tuesday, after Japanese Finance Minister Taro Aso warned
about excessively rapid moves in the currency market.
Speaking after a cabinet meeting, Aso said that huge moves in
the exchange rates are a problem, although he didn't comment on fx
levels.
But "with the dollar at around 110.80 yen, I don't think it is a
big deal," he added.
Data from the Bank of Japan showed that Japan's producer prices
rose 0.2 percent on month in December.
That missed forecasts for an increase of 0.4 percent following
the upwardly revised 0.5 percent gain in November.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary activity index increased for the second
straight month in November, and at a faster-than-expected rate.
The tertiary activity index climbed 1.1 percent month-over-month
in November, following a 0.2 percent rise in October. Economists
had expected a 0.4 percent gain for the month.
The yen edged down to 110.98 against the greenback and 115.16
against the franc, from yesterday's closing values of 110.53 and
114.75, respectively. The next possible support for the yen is seen
around 112.00 against the greenback and 117.5 against the
franc.
The yen declined to an 8-day low of 136.10 against the euro and
a weekly low of 153.10 against the pound, compared to Monday's
closing values of 135.53 and 152.38, respectively. If the yen falls
further, it may find support around 139.00 against the euro and
156.00 against the pound.
The yen that closed Monday's trading at 88.91 against the loonie
weakened to 89.26. Continuation of the yen's downtrend may see it
challenging support around the 90.00 mark.
The yen slipped to weekly lows of 88.42 against the aussie and
81.03 versus the kiwi, from Monday's closing values of 88.02 and
80.67, respectively. The currency held steady thereafter. On the
downside, 89.5 and 82.00 are likely seen as the next support levels
for the yen against the aussie and the kiwi, respectively.
Looking ahead, U.K. CPI and PPI for December and house price
index for November are set for release in the European session.
At 8:30 am ET, the New York Fed's empire manufacturing survey
for January will be out.
The Swiss National Bank Governing Board Chairman Thomas Jordan
delivers a speech titled "How money is created by the central bank
and the banking system" at the University of Zurich at 12:00 pm
ET.
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