CANBERA (dpa-AFX) - The Japanese yen dropped against its major counterparts in the Asian session on Tuesday, amid rising risk appetite on the back of strong corporate earnings results.
Asian shares are mostly higher after falling on concerns over the spread of the Delta variant of the coronavirus and possibility of an early tapering of the bond buying program by the U.S. Federal Reserve.
The U.S. Senate is expected to pass $1 trillion bipartisan infrastructure bill later in the day and send it to the House of Representatives for a vote.
Senate Majority Leader Chuck Schumer said that after the vote on the infrastructure bill, the Senate will begin a fresh debate on $3.5 trillion plan aimed at expansion of social programs.
The larger proposal has no Republican support and would be passed through a special process known as a budget reconciliation.
Data from the Ministry of Finance showed that Japan posted a current account surplus of 905.1 billion yen in June, exceeding expectations for a surplus of 779.8 billion yen following the 1,979.7 billion yen surplus in May.
Exports were up 47.7 percent on year at 7,137 billion yen and imports rose an annual 33.8 percent to 6,488 billion yen for a trade surplus of 648.5 billion yen.
The yen declined to a fresh 2-week low of 110.47 against the greenback and a 4-day low of 153.10 against the pound, from its early high of 110.22 and a session's high of 152.58, respectively. The next possible support for the yen is seen around 112.00 against the greenback and 155.00 against the pound.
Retreating from its previous highs of 119.74 against the franc and 129.35 against the euro, the yen edged down to 120.03 and 129.62, respectively. Next likely support for the currency is seen around 122.00 against the franc and 133.00 against the euro.
The yen eased off to 81.09 against the aussie and 77.16 against the kiwi, off its early 6-day highs of 80.71 and 76.89, respectively. The currency is likely to find support around 82.00 against the aussie and 79.00 against the kiwi.
The yen hit a 4-day low of 87.95 against the loonie, coming off from a prior high of 87.62. The yen is seen finding support around the 91.5 level.
Looking ahead, German ZEW economic sentiment for August is due out in the European session.
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