Forex Pros – The U.S. dollar eased up to an eight-day high against the yen on Wednesday, as China’s interest rate increase did little to change the favorable outlook for global growth.
USD/JPY hit 82.51 during late Asian trade, the pair’s highest since January 28; the pair subsequently consolidated at 82.45, easing up 0.1%.
The pair was likely to find support at 81.76, Tuesday’s low and resistance at 82.91, the high of January 28.
On Tuesday, The People’s Bank of China unexpectedly raised its benchmark interest rate for the third time since mid-October, intensifying efforts to curb spiraling inflation and ward off a property bubble.
The move by Chinese policymakers to rein in inflation and allow growth to continue at a more sustaninable pace was viewed in a positive light by markets, which until recently have tended to see any tightening in China as a danger to global growth.
The yen was also down against the euro, with EUR/JPY rising 0.3% to hit 112.55.
Later in the day, the head of the U.S. Federal Reserve, Ben Bernanke was to testify before the Budget Committee in Washington.
ForexPros.com
