Investing.com - The dollar moved lower against the firmer yen on Tuesday, after steep losses in Asian equities markets overnight supported safe haven demand for the yen.
USD/JPY hit 97.20 during late Asian trade, the lowest since Friday; the pair subsequently consolidated at 97.23, shedding 0.33%.
The pair was likely to find support at 96.84, the low of August 13 and resistance at 98.11, Monday’s high.
The traditional safe haven yen was boosted as expectations that the Federal Reserve may start to unwind its USD85 billion-a-month asset purchase program as soon as next month sparked weakness in Japanese equities markets overnight.
Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to phase out stimulus measures.
Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.27% to 129.74.
The euro was little changed after official data on Tuesday showed that German producer price inflation dipped 0.1% in July from a month earlier and was 0.5% higher on a year-over-year basis.
Economists had forecast a 0.2% month-over-month increase and a 0.7% annual gain.
