Euro, yen gain on week

Story link: Euro, yen gain on week

The euro was stronger on the week in anticipation of upcoming elections in Germany, where some analysts predict that a victory by the center-right Christian Democratic Union would bring needed structural reforms in that country and also encourage reform in places like Italy and France. Much higher portfolio inflows, reported earlier in the week, also helped the shared currency to gains.

While the euro fell 0.3 percent on the week to Sfr1.5454 in relation to the Swiss franc, it was up by 1.4 percent to $1.2332 against the US dollar, while it gained 0.7 percent to £0.6817 in relation to sterling and added 0.5 percent to ¥134.97 versus the yen.

The yen was aided higher this week by foreign demand for Japanese equities as well as by the growing probability that Prime Minister Junichiro Koizumi will be retained in office by the elections to be held on September 11.

The Japanese currency gained 0.8 percent on the week to ¥109.46 versus the US dollar, while it was up 0.2 percent to ¥197.97 in relation to sterling. Sterling was harmed by weak data from the UK manufacturing sector.