Investing.com - The dollar rose against the yen on Friday after
Federal Reserve officials in the U.S. earlier played down talk that
monetary stimulus measures may stay in place longer than once
A wave of disappointing economic indicators sent investors ditching
the greenback beforehand amid sentiments the Federal Reserve will
keep monetary stimulus measures such as its monthly USD85 billion
bond-buying program in place for longer than once anticipated.
Monetary stimulus tools tend to weaken the greenback to spur
Better-than-expected machinery data out of Japan bolstered the yen
somewhat and curbed the dollar's advance.
In Asian trading on Friday, USD/JPY was trading at 102.33, up
0.07%, up from a session low of 102.08 and off a high of 102.38.
The pair was likely to find resistance at 102.77, Wednesday's high,
and support at 101.27, Tuesday's low.
The Federal Reserve Bank of Philadelphia reported earlier that its
manufacturing index fell to -5.2 in May from 1.3 in April.
Analysts were expecting the index to improve to a reading of 2.4 in
Meanwhile, the Department of Labor said earlier that the number of
individuals filing for initial unemployment assistance in the U.S.
rose by 32,000 to 360,000 last week, well above expectations for an
increase of 2,000 to 330,000.
Soft inflation data spooked investors as well.
The country's consumer price index fell 0.4% in April from March,
worse than expectations for a 0.2% decline, down for the second
Year-on-year inflation rates in the U.S. came to 1.1%, just shy of
market expectations for a 1.3% reading and well below the Federal
Reserve's 2% target.
Thursday's data came in wake of soft industrial output and
producer-price reports released on Wednesday.
The dollar, meanwhile, gained steam after Federal Reserve Bank of
San Francisco President John Williams suggested earlier that
despite disappointing economic indicators, monetary authorities may
begin to scale back the program later this year.
Philadelphia Fed President Charles Plosser, a known inflation hawk,
added separately that the Fed should even consider scaling back the
program next month.
The yen, however, saw support of its own on better-than-expected
data at home.
In a report, the Economic and Social Research Institute said that
Japan's core machinery orders rose 14.2% in March, the largest
monthly pickup in eight years.
Analysts had expected Japan's core machinery orders to rise 2.8% in
The yen, meanwhile, was up against the pound and up against the
euro, with GBP/JPY down 0.04% and trading at 156.07 and EUR/JPY
trading down 0.02% at 131.71.
On Friday, the U.S. will release preliminary data from the
University of Michigan on consumer sentiment and inflation
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