Yen And Dollar Advance As Equities Slip On Recovery Doubts

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Wednesday, the Japanese yen and the U.S. dollar advanced against other major currencies as a slide in Asian and European stocks on global economic concern promoted investors to seek the safe haven currencies. The yen rose to a 6-day high against the pound and the greenback.

In Asia, most of the regional stocks closed the day in a negative territory, following a disappointing U.S. ISM non-manufacturing composite report.

Australia's All Ordinaries index lost 21.90 or 0.5% and the S&P 200 index lost 21.50 points or 0.5%, Hong Kong's Hang Seng fell by 244.40 points or 1.2%, Japan's Nikkei 225 was down by 58.40 points or 0.6%, South Korea's Kospi shed 9.3 points or 0.5%.

However, New Zealand's NZSE 50 was up by 9.3 or 0.3%, China's Shagai Composite index garnered 11.7 points or 0.5%.

Following weak Asian equities, the European stocks also opened lower, which helped yen and dollar climb further.

In Europe, Germany's DAX fell 0.6% in early deals, France's CAC 40 index plunged 1.2% and U.K.'s FTSE 10 index lost 0.9%.

The yen rose to a 6-day high of 87.20 against the U.S. dollar and 131.73 against the pound at 3:05 am ET, compared to yesterday's closing quotes of 87.49 and 132.58, respectively.

If the yen gains further, it may target around 87.0 against the greenback and 131.30 against the pound. At present, the yen is worth 87.25 against the dollar and 131.73 against the yen.

At 3:05 am ET, the yen rose to 82.03 against the Swiss franc with 81.90 seen as the next near term upside target level. At present, the yen is trading at 82.06 against the franc, compared to yesterday's close of 82.61.

Currently, the yen is worth 109.70 against the euro, compared to 110.44 hit at yesterday's close. If the yen advances further, it may target around the 109.20 level.

Against the British currency, the U.S. dollar is trading now at 1.5091, compared to yesterday's closing quote of 1.5153. On the upside, the greenback may target around the 1.488 level in near term.

Extending its uptrend, the U.S. dollar rose to 1.0640 against the franc at 3:00 am ET. At present, the greenback-franc pair is worth 1.0629, up 0.31%, from yesterday's close of 1.0596.

The U.S. dollar advanced against the 16-nation currency in early European deals on Wednesday. As of now, the greenback is worth 1.2582 against the euro, compared to yesterday's near 7-week low of 1.2663. If the greenback gains further, it may target around the 1.248 level.

In the upcoming hours, the euro-zone final first quarter GDP and the German factory orders report for May are expected.

There are no major economic reports scheduled for release from the U.S. today.(Provided by RTTNews)