Yen Falls as Rising Stocks Spur Demand for High-Yield Assets


Staff member
Nov 30, 2008
The yen fell against the euro as Asian stocks gained on optimism the worst of the global economic slump may be ending, spurring investors to increase purchases of higher-yielding assets.

The euro rose versus the dollar on speculation European Central Bank President Jean-Claude Trichet will signal the bank will refrain from cutting interest rates further after lowering them later today. The Australian dollar touched the highest in almost a week versus the greenback as the nation’s trade surplus unexpectedly widened, boosting the appeal of the currency.

“Asian and Japanese stocks are rising, reflecting an improvement in risk appetite,” said Hideki Amikura, deputy general manager of foreign exchange in Tokyo at Nomura Trust and Banking Co., a unit of Japan’s largest brokerage. “This is leading to selling of the yen.”

The yen dropped to 131.36 per euro as of 7:32 a.m. in London, from 130.52 in New York yesterday. Japan’s currency fell to 98.73 against the dollar from 98.53. The euro advanced to $1.3305 from $1.3249. Europe’s single currency was at 91.24 British pence from 91.59 pence. Australia’s dollar rose to 70.40 U.S. cents, from 69.93 cents yesterday.

From Bloomberg News.