Euro rises from lows as yen beset by political concerns

Story link: Euro rises from lows as yen beset by political concerns

the euro saw gains against the dollar, the yen, and sterling. Turning around recent declines that took it to record lows, the euro rose 0.2 percent to $1.2304 against the dollar; it has gained 1.1 percent on the dollar since it reached an 8-month low last week.

The euro was up 0.4 percent against the yen, as investors speculated that the Bank of Japan might intervene to weaken the yen against the euro. This has been done in the past in relation to the dollar, but some analysts’ do not believe that such a move is ikely any time soon. The euro gained 0.2 percent to £0.6706 in relation to sterling.

Meanwhile,, the yen fell 0.2 percent in relation to the US dollar, to ¥106.84 on Wednesday. It also lost 0.2 percent to ¥196.00 against sterling. These declines were blamed on continuing speculation over whether or not Chinese currency will be revalued, reaction to further declines in Japan’s leading economic indicators, and to proposed changes in Japan’s commercial code, which could cause some foreign companies to leave Japan if they are adopted.

The US dollar declined a fraction in relation to sterling to $1.8360 and was down to $0.7692 against the Australian dollar.

The Swedish krona lost 0.6 percent in relation to the euro to SKr9.1905 as figures were announced that showed the Swedish GDP growth rate at 0.3 percent, half of what was expected.