Yen strong while euro and dollar weaken

Story link: Yen strong while euro and dollar weaken

The US dollar was down in relation to almost all currencies on Monday.

The exception was the Brazilian real, which fell 1.9 percent in relation to the dollar amid sell-offs in reaction to a political corruption scandal in which the Brazilian Workers Party has been accused to paying congressmen to support its programs.

The US dollar was also down 0.4 percent against sterling, to $1.8205. It was also down 1.3 percent to $0.7651 in relation to the Australian dollar and fell 1.4 percent against the New Zealand dollar.

The yen was up in relation to the US dollar, rising 0.8 percent to ¥106.87.

The yen was also higher against sterling, up 0.4 percent to ¥195.50, which was a four-month high. The yen was helped by news from the Japanese ministry of finance that corporate spending was up 7.4 percent in the first quarter of 2005 after having risen only 3.4 percent in the previous quarter.

The euro also rose in relation to the US dollar, rising 0.4 percent to $1.2271. This rise had more to do with profit-taking than with any rise in confidence in the eurozone.

The euro also got some help as mainstream politicians staged a show of unity after last week’s “no” votes on the European Union constitution by the French and the Dutch. The euro fell in relation to the yen, however, where it was down 0.5 percent to ¥131.11.