IT'S TIME. It's time for an easier way to invest. Open a Scottrade Account
Forex - USD/JPY drops as market bets Fed will keep policy loose
ForexSep 13, 2013 02:30PM ET
Investing.com - The dollar softened against the yen on Friday as investors took up fresh positions betting that the Federal Reserve will keep monetary policy loose at its meeting next week even if it decides to taper the pace of its monthly asset purchases.
In U.S. trading on Friday, was trading at 99.23, down 0.34%, up from a session low of 99.20 and off a high of 99.98.
The pair was likely to find support at 99.02, Thursday's low, and resistance at 99.90, Thursday's high.
While many investors expect the Federal Reserve to announce plans to taper its USD85 billion in monthly asset purchases at its Sept. 17-18 meeting, most feel the U.S. central bank will trim that figure only slightly, which softened the greenback on Friday.
Stimulus tools such as Fed asset purchases weaken the dollar by driving down borrowing costs, though expectations that the Fed will only slightly cut the amount of bonds it purchases each month — if it decides at all — continued to bolster the yen's safe-haven appeal, especially after a string of soft U.S. indicators hit the wire earlier.
In the U.S. earlier, the Thomson Reuters/University of Michigan preliminary U.S. consumer sentiment index fell to 76.8 in September from 82.1 in August, worse than expectations for a decline to 82.0.
Elsewhere, official data showed that U.S. retail sales rose 0.2% in August, missing expectations for a 0.4% rise after an upwardly revised 0.4% increase the previous month.
Core retail sales, excluding automobiles, rose 0.1% last month, short of expectations for a 0.3% gain after an upwardly revised 0.6% increase in July.
Elsewhere, separate data showed that the U.S. producer price index rose 0.3% in August, more than the expected 0.2% after a flat reading the previous month.
Core producer price inflation, excluding food and energy, was flat last month, compared to expectations for a 0.1% rise, after a 0.1% gain in July.
The yen, meanwhile, was down against the pound and up against the euro, with up 0.20% and trading at 157.62 and trading down 0.26% at 132.03.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.