Forex News: Yen Falls Amid Fiscal Worries

Yen Falls Amid Fiscal Worries

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Monday, as fiscal concerns replaced the Bank of Japan's (BoJ) rate hike expectations.

The JPY is still being weakened by expectations that Sanae Takaichi, Japan's next prime minister, will oppose early tightening and embrace expansionary spending measures.

In addition, indications of a reduction in US-China trade hostilities increase investors' desire for riskier assets, which ultimately deters demand for the safe-haven Japanese yen.

In economic news, data from the Bank of Japan showed that Japan's Services Producer Price index increased for the second consecutive month in September, rising to 3.0 percent from 2.7 percent in August.

In the Asian trading today, the yen declined to a 33-years low of 178.15 against the euro and nearly a 3-week low of 153.16 against the euro, from Friday's closing quotes of 177.73 and 152.87, respectively. If the yen extends its downtrend, it is likely to find support around 179.00 against the euro and 154.00 against the greenback.

Against the pound and the Swiss franc, the yen edged down to 203.97 and 192.37 from last week's closing quotes of 203.52 and 192.12, respectively. The yen may test support near 206.00 against the pound and 193.00 against the franc.

Looking ahead, the German Ifo business climate index for October is due to be release at 4:00 am ET in the European session.

In the New York session, U.S. Dallas Fed manufacturing index for October and U.S. durable goods orders for September are slated for release.

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