Forexpros –
Forexpros – The U.S. dollar moved lower against the Japanese yen in U.S. trade Friday,
as Wall Street shares slumped on euro-zone debt concerns and questions remained whether a proposed USD447 billion economic stimulus package would be approved by Congress.
In early U.S. trade USD/JPY hit 77.10, the pair’s lowest since Tuesday; the pair subsequently consolidated at 77.25, falling 0.33%.
The pair was likely to find support at 76.71, Tuesday’s low, and resistance at 77.70, Wednesday’s high.
U.S. stocks retreated on news that European Central Bank Governing Council member Jeurgen Stark planned to step down from his post, reportedly over disagreement with ECB officials on the central bank’s resumption of its bond buying program.
Stark’s resignation reignited concerns over Europe’s ongoing debt crisis and plans for the European Financial Stability Facility, a rescue fund for debt threatened euro-zone members.
In mid-day U.S. trade, the Dow Jones Industrial Average fell sharply by 2.55% to 11,007.80, the Nasdaq Composite Index dropped 2.12% to 2,475.43, and the S&P 500 retreated 2.46%. to 1,156.70.
On Thursday evening, U.S. President Barack Obama proposed a USD447 billion economic stimulus package that included tax cuts and other incentives the president insisted would provide a spark to the faltering U.S. economy.
Passage of the deal was expected to face a tough challenge in the U.S. House of Representatives where opposition Republicans hold the majority.
In Marseille, France, Japanese Finance Minister Jun Azumi said he would try to express to his fellow G-7 officials ongoing concerns that Tokyo has over a persistently strong yen.
The Bank of Japan has acted twice independently in the past year to weaken the yen against its counterparts, most recently on August 4.
Meanwhile, the yen moved higher against the euro and the British pound with EUR/JPY down sharply by 1.86% to hit 105.57, and GBP/JPY slumping 0.82% to hit 122.62.
The meeting of G-7 finance ministers in Marseilles was scheduled to conclude later Friday.
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