Fri, 19 Jun 2009 00:00:00 +0200

The Yen Tumbles Versus the Major Currencies

The Japanese Yen weakened against all 16 major currencies after U.S. economic reports added to signs the steepest global slump since World War II may be starting to end. The JPY remained low against the EUR for a third day as signs the global recession is easing spurred demand for higher-yielding assets. The currency weakened to 134.43 per EUR and fell to 96.58 per U.S. Dollar. The Yen declined the most versus the Australian and New Zealand Dollars after the World Bank said the Chinese economy will expand 7.2% this year, up from a previous forecast of 6.5%. The Japanese currency is still headed for weekly gains versus the Dollar and the EUR after U.S. reports earlier this week showed confidence among homebuilders fell unexpectedly in June, and industrial production dropped for a seventh month in May, raising concerns that any recovery by the world's largest economy will take time. The Yen may continue to decline if there are more signs in the coming week that the global economic slump is dissipating.

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