Forexpros –
Forexpros – The U.S. dollar advanced against the Japanese yen in U.S. trade Friday, after hitting a postwar low and renewing speculation that the currency market may see another intervention by the Bank of Japan.
In afternoon trade USD/JPY hit 75.97, an all-time low; the pair subsequently consolidated at 76.52, rising 0.18%.
The pair was likely to find support at 75.97, the day’s low, and resistance at 77.08, Monday’s high.
Friday’s low-point for the USD/JPY fell below the previous record of 76.25 set in the aftermath of Japan’s March 11 earthquake.
U.S. stocks moved lower for the second day as weak economic data pointed to further sluggishness in the nation’s economy.
The U.S. Labor Department on Thursday reported that initial jobless claims rose by 9,000 to 408,000 for the week ending August 12. Jobless claims were forecast to reach 400,000 for the month.
And the National Association of Realtors said existing home sales fell by 3.5% in July, hitting an eight-month low. Economist’s forecasts predicted a gain of 2.7% for the month.
In late afternoon trade Friday, the Dow Jones Industrial Average was down 1.04% to 10,875, the Nasdaq Composite Index fell 1.07% to 2,355 and the S&P 500 dropped 1.03% to 1,129.
In Tokyo, Japanese Finance Minister Yoshihiko Noda told reporters that officials were closely monitoring markets and pledged to “take all necessary measures to support financial stability and growth” without commenting on specifics of any additional currency market intervention by the Bank of Japan.
The BOJ’s August 4 intervention came shortly after USD/JPY fell near 77.00.
Meanwhile the yen moved higher against both the euro and the British pound with EUR/JPY down 0.29% to hit 110.06, and GBP/JPY falling 0.2% to hit 126.18.
U.S. Federal Reserve Chairman Ben Bernanke was expected to make a speech at next week’s annual central bank meeting in Jackson Hole, Wyoming,
Forexpros
