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Yen Falls Amid Risk Appetite

The Japanese yen slipped against its most major counterparts in the Asian session on Thursday amid rising risk appetite, as crude oil recouped its overnight losses and better-than-expected Japanese trade data spurred optimism about global growth.

Oil prices snapped its early losses after official data showed that crude stockpiles fell 1 million barrels last week to 532.34 million barrels. Comments from the OPEC Secretary-general Mohammad Barkindo that the group was committed to cutting inventories to the five-year average also lifted mood.

Data from the Ministry of Finance showed that Japan logged a merchandise trade surplus of 614.722 billion yen in March.

That was shy of forecasts for a surplus of 605.6 billion yen following the upwardly revised 813.5 billion yen surplus in February.

Exports climbed 12.0 percent to 7.229 trillion yen on year, while imports improved 15.8 percent to 6.614 trillion yen.

Speaking at Columbia University on Wednesday, Japanese Finance Minister Taro Aso told that a bilateral trade deal with the U.S. has "various problems," as Tokyo couldn't make up losses from a compromise with the United States.

The yen fell against its major counterparts on Wednesday.

In Asian trading, the yen dropped to 116.90 against the euro, from a high of 116.48 hit at 5:15 pm ET. Continuation of the yen's downtrend may see it challenging support around the 118.00 zone.

Reversing from an early high of 108.88 against the franc, the yen fell to 109.29. The yen is seen finding support around the 111.00 region.

The yen edged down to 139.66 against the pound, off its early high of 138.96. On the downside, the yen may locate support around the 141.00 area.

The yen reached as low as 81.86 against the aussie, compared to Wednesday's closing value of 81.60. If the yen falls further, it may locate support around the 83.00 zone.

The yen declined to a 9-day low of 76.75 against the kiwi and held steady in later part of the deals. The pair finished Wednesday's trading at 76.22.

On the flip side, the yen rose to 108.73 against the greenback, after having fallen to 109.06 at 10:00 pm ET. The next possible resistance for the yen is seen around the 106.00 level.

Looking ahead, Eurozone construction output for February is due in the European session.

The Bank of England governor Mark Carney speaks before Institute of International Finance event in Washington at 6:30 am ET.

At 7:30 am ET, Carney participates in a panel discussion at the Bank of France event, in Washington.

U.S. weekly jobless claims for the week ended April 15 and leading indicators for March are set for release in the New York session.

Federal Reserve governor Jerome Powell speaks on economic growth and capital markets in Washington D.C at 8:00 am ET.

At 10:00 am ET, Eurozone flash consumer confidence for April will be released.

by RTTNews Staff Writer

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