Forex News: Yen Falls Amid Risk-on Mood

Yen Falls Amid Risk-on Mood

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Monday as Asian stock markets traded higher, amid expectations of the three-year-plus war between Russia and Ukraine ending soon, with U.S. President Donald Trump saying he and Russian President Putin discussed land transfers and security guarantees for Ukraine and had "largely agreed".

U.S. Secretary of State Marco Rubio said the potential for immediate cease-fire is "not off the table." Russia reportedly said it is open to the idea of the U.S. and its European allies offering Ukraine a security guarantee resembling NATO's collective defense mandate.

Traders feel that a positive outcome from this meeting could streamline global trade as well as financial and commodities markets.

The Japanese Yen (JPY) is also impacted by uncertainty over the probable timing of the Bank of Japan's (BoJ) next interest rate hike, which acts as a tailwind for the cross.

In the Asian trading today, the yen fell to a 5-day low of 172.66 against the euro, from Friday's closing value of 172.19. The yen may test support around the 175.00 region.

Against the pound and the Swiss franc, the yen slid to 200.00 and 182.95 from last week's closing quotes of 199.49 and 182.52, respectively. If the yen extends its downtrend, it is likely to find support around 202.00 against the pound and 186.00 against the franc.

Against the U.S. and the Canadian dollars, the yen slid to 147.58 and 106.89 from Friday's closing quotes of 147.20 and 106.52, respectively. On the downside, 151.00 against the greenback and 109.00 against the loonie.

Against the Australia and the New Zealand dollars, the yen dropped to 4-day low of 96.17 and 87.60 from Friday's closing quotes of 95.78 and 87.17, respectively. The yen is likely to find support around 98.00 against the aussie and 89.00 against the kiwi.

Looking ahead, Canada housing starts for July and U.S. NAHB housing market index for August are slated for release in the New York session.

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