Forexpros –
Forexpros – The U.S. dollar moved higher against the Japanese yen in U.S. trade Friday, aided by mild gains on Wall Street and vow by European finance officials to ward off debt contagion in the euro-zone.
In early U.S. trade USD/JPY hit 76.47, the pair’s highest since Thursday; the pair subsequently consolidated at 76.45, rising 0.3%.
The pair was likely to find support at 76.12, Wednesday’s low, and resistance at 77.96, the high of September 4.
Late Thursday, finance ministers and central bank governors from the Group of 20 major economies announced a coordinated effort to resolve Europe’s financial crisis.
In a statement issued from Washington where the International Monetary Fund was holdings its annual meeting, the G-20 said it would be working in the next few weeks to expand the powers of the USD595 billion rescue fund to support troubled banks.
Officials added the group’s aim was to “increase the flexibility” of the European Financial Stability Facility and “maximize its impact.”
“We will ensure that banks are adequately capitalized and have sufficient access to funding to deal with current risks,” the statement said.
Wall Street shares endured a choppy morning session with the Dow Jones Industrial Average moving in and out of negative territory to add 0.11% to 10,745.80, while the Nasdaq Composite Index rose 0.70% to 2,472.96, and the S&P 500 gained 0.35% to 1,133.54.
Meanwhile, the yen moved lower against both the euro and the British pound with EUR/JPY up 0.43% to hit 103.07, and GBP/JPY rising 1.01% to hit 118.33.
The International Monetary Fund and World Bank annual meeting in Washington was scheduled to conclude later Friday.
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