Japanese Yen Drops As Asian Stocks Rise Amid China Rate Cut

The Japanese yen fell against its major counterparts in the Asian session on Friday, as Asian shares rose following a reduction in a key interest rate for long-term loans by the People's Bank of China to mitigate a slowdown in the economy.

The PBOC lowered the five-year loan prime rate by 15 basis points to 4.45 percent from 4.60 percent to revive the property sector. It left the one-year LPR unchanged at 3.75 percent.

In another development, the U.S. Senate approved $40 billion aid package to Ukraine to resist attacks by Russia.

Data from the Ministry of Internal Affairs and Communications showed that Japan consumer prices rose 2.5 percent on year in April.

That exceeded expectations for an increase of 2.4 percent and was up sharply from 1.2 percent in March.

The yen was down against the greenback and the pound, touching 128.21 and 159.82, respectively. The yen is likely to find support around 130.00 against the greenback and 163.00 against the pound.

The yen was lower against the euro, at a 2-day low of 135.60. On the downside, 137.00 is possibly seen as its next support level.

The yen weakened to 131.82 against the franc for the first time since May 9. If the yen drops further, 135.00 is possibly seen as its next support level.

The yen retreated to 90.32 against the aussie and 100.05 against the loonie, from its early highs of 89.37 and 99.38, respectively. The yen is seen finding support around 94.00 against the aussie and 102.5 against the loonie.

The yen hit a 2-day low of 82.02 against the kiwi from yesterday's close of 81.49. The yen is poised to challenge support the 84.00 level.

Looking ahead, Eurozone flash consumer sentiment index for May will be published at 10:00 am ET.