Yen Weakens Amid Risk Appetite

(RTTNews) - The Japanese yen dropped against its major opponents in the European session on Monday, as European stocks rose after an announcement from new U.K. finance minister Jeremy Hunt that the government would scrap almost all tax measures in the mini-budget to provide economic stability.

The Chancellor announced a reversal of almost all of the tax measures set out in the growth plan to calm markets and reduce debt interest pressures.

The Treasury estimated that the U-turn on the mini-budget would raise £32 billion by 2026-27.

Hunt confirmed that the energy price guarantee would end in April.

Earnings results are in focus, as Bank of America reported third quarter results that beat expectations on both the top and bottom lines.

The yen weakened to a 6-1/2-year low of 168.92 against the pound and a 32-year low of 148.90 against the greenback, reversing from its early highs of 166.44 and 148.41, respectively. The yen may face support around 175.00 against the pound and 153.00 against the greenback.

The yen depreciated to near a 4-week low of 149.29 against the franc and near an 8-year low of 145.66 against the euro, following its previous highs of 147.48 and 144.29, respectively. The yen is seen finding support around 152.00 against the franc and 150.00 against the euro.

The yen dropped to more than a 4-week low of 108.36 against the loonie, near 2-week lows of 93.57 against the aussie and 83.86 against the kiwi, down from an early high of 106.91, 4-day highs of 92.08 and 82.47, respectively. If the yen falls further, 110.00, 96.00 and 87.00 are likely seen as its next support levels against the loonie, the aussie and the kiwi, respectively.