U.S. Dollar, Yen Climb On Virus Fears
The U.S. dollar and the Japanese yen advanced against their
major counterparts in the Asian session on Wednesday, amid a
decline in Asian shares as rising virus cases around the world
triggered concerns about the economic recovery.
India reported 2.95 lakh new infections and 2,023 deaths on
Wednesday, the highest daily tally since the pandemic began.
The Japanese government is mulling a state of emergency for
Tokyo and Osaka amid surging cases.
Daily infections topped 4,000 in Japan, with the government is
set to declare the state of emergency in the capital and Osaka this
The U.S. and Canada extended a land-border closure for
non-essential travelers due to COVID-19 concerns.
The move came following a surge in virus cases in Canada,
particularly in the province of Ontario.
The greenback reversed from its early lows of 0.9146 against the
franc and 1.2044 against the euro, rising to 0.9167 and 1.2025,
respectively. The greenback is seen finding resistance around 0.94
against the franc and 1.18 against the euro.
The greenback spiked higher to a 1-week high of 0.7704 against
the aussie, 2-day highs of 0.7162 against the kiwi and 1.3916
against the pound, after falling to 0.7736, 0.7187 and 1.3950,
respectively in early deals. The greenback is poised to find
resistance around 0.75 against the aussie, 0.70 against the kiwi
and 1.34 against the pound.
The greenback rebounded from a 1-1/2-month low of 107.88 against
the yen, with the pair trading at 108.09. Next key resistance for
the greenback is seen around the 110.00 region.
The greenback, however, weakened to 1.2583 against the loonie,
compared to yesterday's close of 1.2604. The greenback is likely to
find support around the 1.225 region.
The yen approached a 5-day high of 117.82 against the franc,
2-day highs of 150.32 against the pound and 129.83 against the
euro, reversing from its early lows of 118.06, 150.72 and 130.12,
respectively. The next possible resistance for the yen is seen
around 114.00 against the franc, 147.00 against the pound and
125.00 against the euro.
The Japanese yen strengthened to 1-week highs of 83.22 against
the aussie and 77.36 against the kiwi, up from its prior lows of
83.59 and 77.62, respectively. The yen is likely to test resistance
around 80.00 against the aussie and 74.00 against the kiwi, if it
In contrast, the yen edged down to 85.85 against the loonie,
after touching 85.57, which was its highest level since March 8.
The yen may locate support around the 0.88 level.
Looking ahead, U.K. house price data is due in the European
Canada CPI for March will be published in the New York
At 10:00 am ET, the Bank of Canada announces decision on
interest rates. Economists forecast the benchmark rate to hold at