Yen, Dollar Fall Versus Higher-Yield Currencies as Stocks Gain

[Enivid]

The yen and the dollar weakened against higher-yielding currencies as Asian stocks advanced, giving investors more confidence to buy riskier assets.

Japan’s currency also fell after a gauge of expected movements in the foreign-exchange markets declined to the lowest since September, indicating a lower risk of fluctuations that can undermine so-called carry trades. South Korea’s won gained the most among the 16 most-active currencies versus the dollar after the government sold bonds overseas for the first time in more than two years to bolster its foreign-exchange reserves.

“Stocks are up and risk appetite is improving,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. The yen are the dollar are likely to be sold, he said

The yen declined to 133.29 per euro as of 8:01 a.m. in London from 132.48 in New York yesterday. Japan’s currency fell 1.1 percent to 58.45 versus the New Zealand dollar, and dropped 1 percent to 71.57 to the Australian dollar. The yen weakened to 100.11 against the greenback from 99.83.

The euro climbed to $1.3311 from $1.3282, after falling to $1.3148 yesterday, the lowest level since March 30. Trading in currencies may be more subdued than usual as the Easter holidays start tomorrow, Lee said.

From Bloomberg News.