CANBERA (Alliance News) - The Japanese yen weakened against the other major currencies in the early European session on Thursday amid risk appetite, as the European shares extended its rally on hopes of a lower Fed interest rate and on easing concerns over Chinese growth.
The UK's FTSE 100 index is currently up 2.04% or 122.08 points at 6,101, France's CAC 40 index is up 2.50% or 112.69 points at 4,613 and Germany's DAX is up 2.90% or 289.52 points at 10,286.
Federal Reserve Bank of New York President William Dudley, a close ally of Fed Chair Janet Yellen, told a press briefing on Wednesday that a September rate hike is looking less compelling than a few weeks ago given the downside risks that international developments could pose to US economic growth.
In the Asian trading today, the yen held steady against its major rivals.
In the early European trading, the yen fell to a 3-day low of 120.56 against the US dollar, from an early high of 119.78. The yen may test support near the 124.00 region.
Against the euro, the pound and the Swiss franc, the yen edged down to 136.43, 186.73 and 126.53 from early highs of 135.55, 185.37 and 125.55, respectively. If the yen extends its downtrend, it is likely to find support around 139.00 against the euro, 193.00 against the pound and 129.00 against the franc.
Against the Australia, the New Zealand and the Canadian dollars, the yen dropped to 2-day lows of 86.19, 78.08 and 91.17 from early highs of 85.04, 77.08 and 90.06, respectively. On the downside, 90.00 against the aussie, 82.00 against the kiwi and 95.00 against the loonie are seen as the next support level for the yen.
Looking ahead, preliminary US GDP data for the second quarter and pending home sales data for July are slated for release in the New York session.
At 7:00 am ET, European Central Bank board member Benoit Coeure is expected to speak at the Conference of Ambassadors organized by the French ministry of foreign affairs in Paris.
At 11:30 am ET, German Chancellor Angela Merkel, EU foreign policy chief Federica Mogherini, European Commission Vice President Maros Sefcovic, European Bank for Reconstruction and Development President Sir Suma Chakrabarti and prime ministers of Italy, Serbia, Slovenia, Croatia and Albania are expected to attend Western Balkans Summit in Vienna.
