Forex - USD/JPY falls as inflation data sparks greenback selloff
Published Mar 15, 2013 02:43PM ET
In U.S. trading on Friday, USD/JPY was trading at 95.36, down 0.78%, up from a session low of 95.08 and off a high of 96.28.
The pair was likely to find resistance at 96.28, the earlier high, and support at 95.08, the earlier low.
In the U.S., the country's consumer price index rose 0.7% in February from January, more than market calls for a 0.5% increase.
The U.S. core consumer price index, which is stripped of volatile food and energy costs, rose 0.2% in February, in line with expectations.
Investors viewed inflation rates as contained, and sold the dollar for profits on sentiments that while the Federal Reserve will eventually wind down stimulus measures one day, the U.S. central bank won't rush to tighten monetary policy
Falling consumer sentiment numbers cemented such views.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment reading for March came to 71.8, the lowest since December of 2011 and well below analysts' calls for a 78.0 reading.
The dollar also saw downward pressure after E.U. policymakers took a more relaxed approach to austerity measures.
At a summit earlier, E.U. leaders granted countries such as France, Spain and Portugal extra time to narrow deficits, which gave the single currency room to rise.
Elsewhere, E.U. and International Monetary Fund officials were outlining a financial assistance package for Cyprus, which further pushed up the single currency as did data on both sides of the Atlantic.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.73% and trading at 143.87 and EUR/JPY trading down 0.41% at 124.47.
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Written By: Investing.com
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