Yen Pares Weekly Advance Versus Euro, Dollar as Stocks Rise


Staff member
Nov 30, 2008
The yen fell for a second day against the euro and the dollar, paring a weekly advance, as stocks rose on speculation governments will expand efforts to revive lending.

The Japanese currency declined most versus the pound and Australian dollar amid speculation the Obama administration will use government cash to cut borrowing costs for homeowners. The euro headed for a weekly drop against the dollar as a report showed Europe’s economy shrank in the fourth quarter by the most in at least 13 years.

“Risk is floating back into the market, sentiment is getting better for higher-yielding currencies,” said Geoffrey Yu, a London-based foreign-exchange strategist at UBS AG, the world’s second-biggest currency trader. “Investors are buying after the sell-off earlier this week.”

The yen fell to 91.64 by 10:30 a.m. in London, from 90.94 late in New York yesterday. The Japanese currency was at 118.26 versus the euro, from 116.95 yesterday and 118.85 a week ago. The euro was at $1.2900, up from $1.2861 yesterday and down from $1.2940 a week ago.

The U.S. Congress is set to give final approval today on the economic stimulus package after lawmakers worked out last-minute disagreements over executive compensation and taxes. The House and Senate scheduled votes on the measure.

Stocks rose, curbing demand for the Japanese currency as a refuge from the financial turmoil. The MSCI World Index advanced 0.2 percent and Standard & Poor’s 500 Index futures expiring in March climbed 1.2 percent.

From Bloomberg News.