Forexpros –
Forexpros – The U.S. dollar edged lower against the Japanese yen in Asian trade Tuesday, on ongoing uncertainty surrounding the upcoming meeting of European finance officials and the prospects for action on the euro-zone’s debt crisis.
In mid-day Asian trade USD/JPY hit 76.79, the pair’s lowest since Monday; the pair subsequently consolidated at 76.81, inching down 0.02%.
The pair was likely to find support at 76.10, the low of September 22, and resistance at 77.49, last Thursday’s high.
On Monday, German Chancellor Angela Merkel’s spokesman Steffen Seibert dashed market hopes for an imminent solution to Europe’s two-year old debt crisis, saying Merkel had made it clear that, “dreams are taking hold now with this package, everything will be solved and everything will be over on Monday won’t be fulfilled.”
The process for an end to the crisis, “surely extends well into next year,” Seibert said at a news briefing from Berlin.
Over the weekend, the Group of 20 finance ministers and central bankers wrapped up talks in Paris, proposing a scheme to ward off Greek default, strengthen regional financial institutions and halt the spread of debt contagion.
Earlier in the day, the U.S. Federal Reserve reported that industrial production rose by a seasonally adjusted 0.2% in September, up from 0.0% in August and in line with market expectations.
On Wall Street, shares suffered from Merkel’s assessment of European debt, with the Dow Jones Industrial Average falling 2.13%, the Nasdaq Composite Index lost 1.98%, and the S&P 500 shed 1.94%.
Meanwhile, the yen moved lower against both the euro and the British pound with
EUR/JPY higher by 0.11% to hit 105.65, and GBP/JPY up by 0.19% to hit 121.18.
U.S. Federal Reserve Chairman Ben Bernanke was scheduled to deliver a speech at the Boston Fed’s economic conference in Boston later Tuesday.
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