Yen Falls After Japan PM Takaichi Comments

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Wednesday, as Japan's Prime Minister Sanae Takaichi signals a looser fiscal target and calls for caution in the Bank of Japan (BoJ) rate hike.

Furthermore, due to Takaichi's support for stimulus, the Bank of Japan has been hesitant to commit to additional interest rate increases.

The safe-haven Japanese yen is still being threatened by this and the excitement about a possible agreement to end the US government shutdown.

Additionally, the JPY bears may refrain from making new wagers due to rumors that Japanese authorities would intervene in the market to stop any further decline in the home currency.

Also, Japanese Finance Minister Satsuki Katayama stated that she would not dispute that the negative effects of the weakening yen on the economy have outweighed the favorable ones.

"We have seen one-sided and rapid movements in the foreign exchange market recently," Katayama said to the parliament.

In other economic news, data from the Japan Machine Tool Builders Association, or JMTBA, showed that Japan's machine tool orders increased for the fourth straight month in October. Machine tool orders climbed 16.8 percent annually in October, faster than the 11.0 percent rise in the previous month. The expected increase was 9.9 percent.

On a monthly basis, machine tool orders were up 2.8 percent in October versus a 15.8 percent growth in September.

In the Asian trading today, the yen declined to a record low of 193.28 against the Swiss franc, a 33-year low of 179.15 against the euro and a 9-month low of 154.79 against the U.S. dollar, from yesterday's closing quotes of 192.55, 178.55 and 154.16, respectively. If the yen extends its downtrend, it is likely to find support around 195.00 against the franc, 180.00 against the euro and 155.00 against the greenback.

Against the pound, the yen edged down to 203.27 from Tuesday's closing value of 202.73. On the downside, 206.00 is seen as the next support level for the yen.

Against Australia, the New Zealand and the Canadian dollars, the yen slid to a 9-day low of 101.08, an 8-day low of 87.51 and more than a 11-month low of 110.47 from yesterday's closing quotes of 100.63, 87.17 and 109.96, respectively. The next possible support level for the yen is seen around 102.00 against the aussie, 89.00 against the kiwi and 112.00 against the loonie.

Looking ahead, U.S. MBA mortgage approvals data and Canada building permits for September are slated for release in the New York session.