News Column

Yen Rises Amid Risk Aversion

August 25, 2014

BRUSSELS (Alliance News) - The Japanese yen strengthened against its key counterparts in the Asian session on Tuesday as traders sought to move into haven assets before the presidents of Russia and Ukraine meet today.

Amid escalating geopolitical tensions, Russian President Vladimir Putin is set to meet Ukranian Presisent Petro Poroshenko in Minsk, Belarus today, as tensions flare across the two nations' border.

The Japanese stock market is trading lower amid the yen's strength and profit taking. The benchmark Nikkei 225 index is currently down 62.37 points or 0.40% at 15,550.

In the economic news, an index measuring corporate service prices in Japan were up 3.7% on year at 102.7 in July, the Bank of Japan said. That was in line with expectations and unchanged from the previous month following an upward revision from 3.6%.

On a monthly basis, prices were flat after adding 0.2% in June. Among the individual components of the survey, prices were higher for finance, leasing and other services. Prices were down for communications and transportation.

The yen rose to a 6-day high of 137.01 against the euro, from an early low of 137.28. At yesterday's close, the yen was trading at 137.49 against the euro. If the yen extends its uptrend, it is likely to find resistance around the 136.30 area. Against the pound and the US dollar, the yen advanced to 4-day highs of 172.13 and 103.81 from early lows of 172.52 and 104.11, respectively. The yen may test resistance near 170.77 against the pound and 102.33 against the greenback.

Moving away from an early low of 113.67 against the Swiss franc, the yen edged up to 113.44. The yen is likely to find resistance around the 112.95 region. Looking ahead, the British Bankers' Association will release its July mortgage approvals report at 4:30 am ET.

In the New York session, US durable goods orders for July, house price indexes for June based on two separate surveys by the Federal House Finance Agency and the S&P/Case-Shiller and consumer confidence index for August are due to be released.

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Source: Alliance News

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