FX: Dollar rises against yen, hitting fresh daily high
Forex Pros – The U.S. dollar rose against the yen on Wednesday, hitting a fresh daily high after Japan's new finance minister said the Bank of Japan and the government should each do their part to combat deflation as early as possible.
USD/JPY hit 91.67 during European afternoon trade, the daily high; the pair subsequently consolidated around 91.59, gaining 0.14%.
The pair was likely to find short-term resistance at 92.88, Friday's high, and support at 90.83, Tuesday's low.
In his comments earlier in the day, Yoshihiko Noda, the Japanese finance minister, added that he will not press the central bank to adopt a rigid inflation target, Reuters reported.
Noda also said he would not seek to guide currency rates in a certain direction, according to the news agency.
The yen fell versus the euro, meanwhile, with EUR/JPY soaring 0.74% to reach 110.31.
Later Wednesday, the U.S. Federal Reserve chairman, Ben Bernanke, was set to testify before the House Budget Committee in Washington, D.C., and then speak at an event in Richmond. Traders were likely to scrutinize his comments for clues to future shifts in monetary policy.
