BRUSSELS (dpa-AFX) - The yen declined against other major currencies in Asian morning deals on Wednesday as traders await the outcome of Federal Reserve's policy meeting ending today.
While the Fed is not expected to announce an immediate change in policy when it releases its post-meeting statement, traders will be looking for any signals regarding when the central bank will scale back its asset purchase program.
The yen was under more selling pressure after Japan recorded a merchandise trade deficit for the 10th consecutive month in May.
Latest figures from the Ministry of Finance said that Japan saw a merchandise trade deficit of 993.916 billion yen in May, following the downwardly revised deficit of 881.9 billion yen (originally 879.9 trillion yen) in April.
Exports surged 10.1 percent on year to 5.767 trillion yen, while imports rose 10.0 percent to 6.761 trillion yen.
The yen depreciated 0.35 percent to 95.65 against the greenback from Tuesday's close of 95.32. If the yen extends its weakness, near term support is visible around 97.00 level.
The yen hit a weekly low of 128.10 against the euro, down from yesterday's closing quote of 127.60. Further extension of bearish trend may provide support for the yen around 129.00 level.
The yen slipped to session's low of 149.50 against the pound and move beyond this mark will set its lowest level hit on June 14. The next support level for the yen is seen around 151.5.
The yen fell to 103.91 against the franc, few pips short of multi-day low of 103.97 reached yesterday. On the downside, the yen may test support around 105.00 area.
In the European session, the Bank of England minutes and Swiss ZEW survey expectations for June are due.
The Federal Open Market Committee rate decision is due at 2:00 pm ET. The Federal Reserve is expected to hold rates at 0.25 percent. Fed chief Ben Bernanke will hold a press conference after the meeting.
Copyright RTT News/dpa-AFX
© 2013 AFX News
