Investing.com - The euro hit a 4-year high against the yen on
Tuesday after a key European Central Bank official expressed
concern about using negative interest rates to ward off
In U.S. trading on Tuesday, EUR/JPY was up 0.40% at 135.59, up from
a low of 134.62 and off a high of 135.71.
The pair sought to test support at 132.21, the low from Nov. 11,
and resistance at 136.0, the high from Oct. 29, 2009.
The euro rose against safe-haven currencies such as the yen after
European Central Bank board member Joerg Asmussen warned that
monetary authorities must be "very careful" when considering the
use of negative interest rates to steer the economy away from low
inflation rates, which supported the single currency.
Elsewhere, data released on Tuesday showed that the ZEW index of
German economic sentiment rose to a four-year high in November.
The ZEW index of German economic sentiment rose to 54.6 this month
from October's 52.8 reading, beating market forecasts for the index
improve to 54.0.
The euro also saw demand from investors avoiding the dollar amid
ongoing expectations for the Federal Reserve to reveal it has not
yet made plans to begin tapering the pace of its monthly asset
Federal Reserve Chair Ben Bernanke is due to speak in public later
Tuesday, and markets took up positions betting that the nation's
top economist won't signal the need for a timetable to begin
tapering the Fed's USD85 billion in monthly bond purchases, which
keep the greenback weak to spur recovery.
Last week, Fed Chair Nominee Janet Yellen suggested the economy
still needs the U.S. central bank's ultra-loose monetary policies
to ensure recovery, and on Monday, the Fed's Bank of New York chief
William C. Dudley said he was hopeful that recovery will gain steam
soon but made no indication over a need to consider scaling back
Investors also bet that the minutes of the Fed's October meeting
due for release on Wednesday will paint a similar picture for the
need to hold off on scaling back stimulus tools for now.
The euro, meanwhile, was up against the pound and up against the
U.S. dollar, with EUR/GBP trading up 0.14% at 0.8396 and EUR/USD
trading up 0.18% at 1.3530.
On Wednesday in the euro zone, Germany is to release data on
producer price inflation, while Japan is to release data on its
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