Yen Rises After FinMin Aso Downplays Need On Fx Intervention
15 February 2018 - 2:07PM
RTTF2
The Japanese yen rose against its major rivals in the Asian
session on Thursday, after Japanese Finance Minister Taro Aso
remarked that there is no need for forex intervention, in the wake
of the recent strength in the yen.
"From our perspective, the current situation doesn't warrant
special intervention. The yen isn't rising or falling abruptly,"
Aso said in Parliament.
As economic fundamentals in Japan and the United States look
"very solid," there is no requirement for immediate intervention,
he told.
Aso's remarks suggested that the policymakers are comfortable
with the recent appreciation of the Japanese Yen, sending it
higher.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's industrial production grew more than initially
estimated in December.
Industrial production advanced a seasonally adjusted 2.9 percent
month-over-month in December, faster than the 2.7 percent rise
reported earlier.
In other economic news, the Cabinet Office reported that the
value of core machine orders in Japan plunged a seasonally adjusted
11.9 percent on month in December - coming in at 792.6 billion yen.
The headline figure was well shy of forecasts for a decline of 2.0
percent following the 5.7 percent gain in November.
The yen appreciated to 106.31 against the greenback, its
strongest since November 2016. The yen is seen finding resistance
around the 104.00 level.
The yen bounced off to 84.35 against the aussie and 78.48
against the kiwi, from its early low of 84.83 and a session's low
of 78.93, respectively. The next possible resistance for the yen is
seen around 82.00 against the aussie and 77.00 against the
kiwi.
The yen edged up to 132.52 against the euro and 114.58 against
the franc, off its previous lows of 133.27 and 115.17,
respectively. If the yen extends rise, 130.00 and 112.50 are seen
as its next resistance levels against the euro and the franc,
respectively.
Reversing from early lows of 149.85 against the pound and 85.66
against the loonie, the yen gained to 148.94 and 85.14,
respectively. On the upside, 147.00 and 84.00 are likely seen as
the next resistance levels for the yen against the pound and the
loonie, respectively.
Looking ahead, Eurozone trade data for December is due in the
European session.
In the New York session, U.S. PPI and industrial production for
January, NAHB housing market for February, weekly jobless claims
for the week ended February 10 and New York Fed's empire
manufacturing survey for February as well as Canada existing home
sales for January are set for release.
At 1:30 pm ET, the Bank of Canada deputy governor Lawrence
Schembri speaks at the Manitoba Association for Business Economics
in Winnipeg.
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