The yen slipped against other major currencies in the early Asian session on Tuesday after the release of Bank of Japan's July meeting minutes.
Members of the Bank of Japan's monetary policy board feel that Japan's economy will return to a moderate recovery path, the minutes from its July 11-12 meeting revealed.
The benchmark uncollateralized overnight call rate was kept unchanged at 0-0.1 percent.
The bank has been providing support to strengthen the foundations for economic growth and pursuing powerful monetary easing," the minutes said. "The bank continues to conduct monetary policy in an appropriate manner. The Bank will also do its utmost to ensure the stability of Japan's financial system."
BoJ also decided to boost the size of the asset purchases by JPY 5 trillion to JPY 45 trillion for end-June 2013, while keeping purchases of government bonds unchanged.
The yen fell to 4-day lows of 78.47 against the U.S. dollar and 79.15 against the Canadian dollar, compared to Monday's close of 78.33 and 78.94, respectively. If the yen slides further, it may target 78.5 against the greenback and 79.5 against the loonie.
Against the pound, the yen dropped to 123.16, its lowest level since August 9 and the next support level for the yen is seen at 123.5. The pair ended Monday's trading at 122.87.
The yen edged down to 82.65 against the Australian dollar and 63.66 against the NZ dollar with 83.00 and 64.00 seen as the next downside target levels, respectively. The yen ended Monday's trading at 82.39 against the aussie and 63.38 against the kiwi.
The yen also weakened against the European currency, hitting as low as 96.88. On the downside, the yen may target the 97.5 level. At yesterday's close, the pair was worth 96.60.
In the European session, preliminary GDP data for the second quarter from Germany, France and Eurozone, Swiss producer & import prices for July, U.K. CPI for July and DCLG house price index for June, German ZEW economic sentiment index for August and Eurozone industrial production for June are expected to influence trading.
The U.S. advance retail sales and PPI for July, business inventories for June are due in the New York morning session.
by RTT Staff Writer
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