Japanese Yen Falls On Rising Risk Appetite
The Japanese yen depreciated against its major counterparts in
the Asian session on Thursday, as risk sentiment improved on rising
crude oil prices and easing concerns about the impact of Chinese
real estate major Evergrande's debt woes.
Traders digested the U.S. Federal Reserve's monetary policy
announcement to begin scaling back asset purchases in the immediate
future and conclude by mid-2022.
Fed officials are evenly split on considering a rate hike next
year, a significant upgrade from June projections that signaled no
liftoff until 2023.
Property developer China Evergrande's shares surged after it had
settled a coupon payment on 5.8% September 2025 bond due today.
The yen weakened to 118.78 against the franc, 128.76 against the
euro and 77.12 against the kiwi, off its early highs of 118.33,
128.28 and 76.69, respectively. The yen is seen finding support
around 120 against the franc, 130.00 against the euro and 79.00
against the kiwi.
The yen slipped to a 2-day low of 149.99 against the pound and a
6-day low of 86.34 against the loonie, after rising to 149.34 and
85.84, respectively in early trades. Next key support for the yen
is seen around 151.00 against the pound and 88.00 against the
The yen hit a 3-day low of 109.92 against the greenback, down
from Wednesday's close of 109.77. The yen may locate support around
the 112.00 level.
The yen reversed from an early high of 79.36 against the aussie,
edging down to 79.78. If the yen falls further, it is likely to
test support around the 81.00 region.
The latest survey from Markit Economics showed that Australia's
manufacturing sector continued to expand in September, and at a
faster pace, with a manufacturing PMI score of 57.3.
That's up from 52.0 in August and it moves further above the
boom-or-bust line of 50 that separates expansion from
Looking ahead, PMI reports from major European economies are due
in the European session.
The Swiss National Bank's monetary policy announcement will be
out at 3:30 am ET. Economists widely expect the central bank to
maintain policy rate at -0.75 percent.
The Bank of England's monetary policy announcement is due at
7:00 am ET. The Monetary Policy Committee is widely expected to
hold the key rate at a record low of 0.10 percent and the
quantitative easing programme at GBP 895 billion.
Canada retail sales for July and and U.S. weekly jobless claims
for the week ended September 18 will be released in the New York
Euro vs Yen (FX:EURJPY)
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