The yen and the dollar advanced against higher-yielding currencies after economic reports showing the global recession may be prolonged spurred demand for the relative safety of the two currencies.
The yen rose versus all 16 of the most-traded currencies after a Japanese report showed the world’s second-largest economy shrank at a record pace and Australian data showed consumer confidence fell. The euro dropped against the dollar on concern a German report today will show producer prices recorded the biggest annual decline in six years. Indonesia’s rupiah fell the most in a month as the global slump damped the appetite for emerging-market assets.
“The worldwide recession will probably persist, resulting in risk aversion,” said Toshihiko Sakai, head of trading for foreign exchange and financial products in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s largest bank. “There’s no doubt that Japan’s GDP figures are the worst ever, so it’s too early to say the economy has bottomed out. The yen and the dollar are likely to be bought.”
Japan’s currency advanced to 129.95 per euro as of 6:50 a.m. in London, from 130.81 in New York yesterday when it fell to 131.85, the weakest level since May 13. The dollar rose to $1.3597 per euro from $1.3630. The yen climbed to 95.57 per dollar from 95.97.
From Bloomberg News.
The yen rose versus all 16 of the most-traded currencies after a Japanese report showed the world’s second-largest economy shrank at a record pace and Australian data showed consumer confidence fell. The euro dropped against the dollar on concern a German report today will show producer prices recorded the biggest annual decline in six years. Indonesia’s rupiah fell the most in a month as the global slump damped the appetite for emerging-market assets.
“The worldwide recession will probably persist, resulting in risk aversion,” said Toshihiko Sakai, head of trading for foreign exchange and financial products in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s largest bank. “There’s no doubt that Japan’s GDP figures are the worst ever, so it’s too early to say the economy has bottomed out. The yen and the dollar are likely to be bought.”
Japan’s currency advanced to 129.95 per euro as of 6:50 a.m. in London, from 130.81 in New York yesterday when it fell to 131.85, the weakest level since May 13. The dollar rose to $1.3597 per euro from $1.3630. The yen climbed to 95.57 per dollar from 95.97.
From Bloomberg News.