Yen Falls Most in 3 Weeks Versus Euro as Yield Demand Increases


Staff member
Nov 30, 2008
The yen fell the most in three weeks against the euro after a government report showed Japanese investors bought more securities abroad than they sold for a seventh week.

The yen weakened the most versus the Australian and New Zealand dollars as gains in Asian stocks boosted speculation Japan’s employees will use their summer bonuses to buy overseas assets. The U.S. dollar climbed against 10 of the 16 most-traded currencies after Japanese Finance Minister Kaoru Yosano said the nation’s faith in a strong dollar and its trust in the greenback as the world’s reserve currency is “unshakable.”

“The global environment for investors’ risk-taking is gradually improving,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. “The bias is for the yen to be sold, especially as trust funds are being launched to attract bonuses.”

The yen declined 0.9 percent to 134.43 per euro as of 6:01 a.m. in London from 133.23 in New York yesterday, the biggest drop since June 1. It dropped to 96.28 against the dollar from 95.66. Japan’s currency slid to 77.11 versus Australia’s dollar from 76.22 and fell to 61.70 per New Zealand dollar from 61.19. The yen weakened to 83.37 versus Canada’s currency from 82.61.

From Bloomberg News.