Investing.com - The U.S. dollar fell against the Japanese yen in Asian trade Thursday, as European officials grappled with details of a plan to comprehensively address the region’s debt crisis.
In mid-day Asian trade USD/JPY hit 75.99, the pair’s lowest since Wednesday; the pair subsequently consolidated at 76.05, easing down 0.16%.
The pair was likely to find support at 75.75, the all-time low set on Tuesday, and resistance at 77.45, the high of October 17.
At a summit of European leaders in Brussels, European Council President Herman Van Rompuy said that finance ministers would finalize workings of a bank recapitalization plan outlined earlier Wednesday.
EU leaders had discussed a number of options, according to reports, to expand the power and reach of the USD612 billion European Financial Stability Facility, a rescue fund for debt threatened nations in the euro-zone.
French President Nicolas Sarkozy was reportedly hoping to enlist the support of China who would contribute to the fund by purchasing bonds issued by the EFSF.
European officials have set their sights on an expansion to the fund totaling USD1.38 trillion, according to reports.
In a late report, European banks were to be pressed to raise USD147 billion by next June in order to comply with capital requirements agreed to by European leaders in Brussels.
Meanwhile Thursday, Japan’s Ministry of Economy, Trade and Industry reported that retail sales fell 1.2% in September from the same period a year earlier. The September decline followed a 2.6% drop in August.
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Economists had forecast a 0.1% fall in Japan’s retail sales for the period.
Earlier Wednesday, the U.S. Census Bureau reported that sales of new homes rose more than expected, by 5.7% in September, to 313,000 units. Market expectations were for an increase to 300,000 units for the month.
Separately, the Census Bureau announced that core durable goods orders advanced by 1.7% in September, outstripping economist forecasts of a 0.5% increase. Durable goods orders, including transportation items, fell by 0.8% in September, the second straight monthly drop.
In Wednesday trade, Wall Street shares moved higher on hopes for progress at the Brussels summit. The Dow Jones Industrial Average rose 1.39% to 11,869.00, the Nasdaq Composite Index advanced 0.46% to 2,650.67, and the S&P 500 added 1.05% to end the day at 1,242.00.
Meanwhile, the yen moved lower against both the euro and the British pound with
The Japanese government was due to release its latest figures on industrial production and the nation’s unemployment rate later Thursday.