Japanese Yen Falls Amid Rising Risk Appetite
February 09 2022 - 10:23PM
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The Japanese yen slipped against its major rivals in the Asian
session on Thursday, as most Asian stocks climbed, following the
broadly positive cues overnight from Wall Street, led by a rally in
tech stocks and strong earnings.
Investors awaited a key report on U.S. inflation for more
indications about the pace of tightening of monetary policy by the
Federal Reserve.
The CPI is expected to rise by 7.3 percent on an annual basis in
January, marking the highest reading seen since 1982.
A strong reading could put pressure on the Fed to raise rates
more aggressively and at a faster pace than projected.
Speaking on CNBC's "Squawk Box," Atlanta Federal Reserve
President Raphael Bostic said that he expects inflation to ease
soon and that a three or four rate hike hikes may be appropriate
for this year.
The yen dropped to 132.15 against the euro, 156.60 against the
pound and 125.18 against the franc, off its early highs of 131.87,
156.19 and 124.81, respectively. The yen is poised to challenge
support around 134.00 against the euro, 160.00 against the pound
and 128.00 against the franc.
The yen touched 115.71 versus the greenback, its lowest level
since January 10. On the downside, support is seen near the 118.00
level.
The yen weakened to near a 4-week low of 83.07 against the
aussie and near a 3-week low of 91.28 against the loonie, after
gaining to 82.73 and 91.03, respectively in early trades. Immediate
support for the yen may be found around 86.00 against the aussie
and 93.00 against the loonie.
The yen dropped to 77.43 versus the kiwi, hitting a 3-week low.
If the yen extends drop, 80.00 is possibly seen as its support
level.
Looking ahead, U.S. weekly jobless claims for the week ended
February 5, inflation data and monthly budget statement for January
are scheduled for release in the New York session.
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