Yen Weakens Amid Risk Appetite
02:45, 22nd October 2018
(RTTNews) - The Japanese yen drifted lower against its major counterparts in early European deals on Monday, as sentiment lifted up amid reassuring comments from Chinese officials pledging support to businesses to keep economy on track.
After last week's coordinated pronouncements from three top Chinese financial regulators, Chinese President Xi Jinping vowed "unwavering" support for the country's private sector.
In an open letter published in state media, he said that Beijing would continue to value and protect the country's private business owners to ensure a "better tomorrow".
Beijing also released new details on proposed personal income tax cuts that would be at least 1 percent of gross domestic product.
Data from the Ministry of Economy, Trade and Industry showed that Japan's all industry activity rebounded in August.
The all industry activity index climbed 0.5 percent month-on-month in August, reversing a 0.2 percent drop in July and a 0.9 percent decrease in June. Economists had forecast a monthly growth of 0.4 percent.
The currency has been trading in a negative territory against its key counterparts in the Asian session, with the exception of the franc.
The yen slipped to 4-day lows of 113.42 against the franc and 147.58 against the pound, from its early highs of 112.69 and 146.67, respectively. The yen is seen finding support around 115.00 against the franc and 150.00 against the pound.
Reversing from its early highs of 112.35 against the greenback and 129.21 against the euro, the yen weakened to near a 2-week low of 112.81 and a 6-day low of 130.20, respectively. On the downside, 115.00 and 132.00 are possibly seen as the next support levels for the yen against the greenback and the euro, respectively.
The Japanese currency dropped to 86.21 against the loonie and 80.32 against the aussie, reversing from its previous highs of 85.65 and 79.65, respectively. If the yen falls further, it may find support around 87.5 against the loonie and 82.00 against the aussie.
The yen retreated to 74.39 against the kiwi, after rising to 73.95 at 8:30 pm ET. This is short of few pips from more than a 2-week low of 74.41 hit at the commencement of today's trading. The next possible support for the yen is seen around the 76.00 level.
Looking ahead, Canada wholesale sales for August are due at 8:30 am ET.
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