Volatility in Japanese Stocks Causes the USD/JPY to Move Lower

Sell-off in Asian currencies move from bad to worse
Sell-off in Asian currencies move from bad to worse

Tuesday’s Asian trading session showed the yen perking up against the dollar, although modestly but continuing. The USD/JPY plummeted by 0.20% to 101.09. The pair was to find support at 100.53 and resistance at 102.57 based on the low from May 10 and Friday’s high, respectively.

The USD index advanced in between talks that the improving U.S. fundamentals might quicken the Federal Reserve’s tapering of the $85 billion monthly bond purchase. The greenback leaped 0.9% to 101.86 yen in Tokyo and gained 0.2% to USD1.2904 for every euro. Yen, on the other hand, plunged 0.7% to 131.42 for every euro.

Dollar in Australia traded 0.7% of the lowest since 2011. The AUD here gained 0.9% to 98.18 yen, after showing a slump of 3.2% over the past four sessions. Meanwhile, the dollar in New Zealand moved up by 1% to 82.40 yen. The 10-year bond here climbed up by 4 ½ base points.

In Korea, however, the won slipped by 0.2% to 1,124.90 per dollar in Seoul. Rupee in India plunged to its lowest level since September, as investors privileged the US dollar on signs depicting the recovery of the largest economy on the globe. The currency plummeted by 0.2% to 55.6750 per dollar in the Tuesday trading session at Mumbai.

In Philippines, the peso slipped by 0.6% to 41.865 for every dollar in Manila, this is the lowest seen for this currency since September 27, as per data collected from Tullett Prebon Plc.

Rupiah in Indonesia slumped the most in two weeks on assumptions that the demand for dollar will go up, as local companies now get ready to pay payments in foreign currencies. Rupiah here slid 0.4% to 9,830 per dollar in Jakarta; this is the largest drop since May 16, as per data collected from Bloomberg.

In the meantime, the Baht in Bangkok plunged by 0.2% to 29.92 per dollar as per reports compiled by Bloomberg. This month the currency saw a 2% fall, reaching 30.10 on May 23, the lowest since January 16.

The Dollar Index, which shows movement against six major equivalents, gained 0.2% to arrive at 83.865; this reached its highest in roughly three years on May 23.