Yen, Swiss franc decline

Yen, Swiss franc decline

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The yen was weaker again on Thursday as bond yields stabilized after recent increases, leading more investors to look for more risk, which led to the selling of yen to fund more carry trades.

At mid-session in New York, the yen had dropped 0.1 percent to ¥242.10 versus sterling, while it was 0.3 percent lower against both the euro and the US dollar. The yen traded at ¥163.70 in relation to the euro and was at ¥122.95 versus the greenback. The Japanese currency was also 0.3 percent lower against the New Zealand dollar, to ¥92.25.

The Swiss franc was also a bit weaker, also the victim of selling to finance carry trades. In addition, the Swiss National Bank raised interest rates in Switzerland by 25 basis points to 2.5 percent. Analysts expect rates there to rise to 3 percent by the end of the year. The Swiss currency dropped 0.1 percent against the US dollar and the euro, to SFr1.2450 and SFr1.6580 respectively.

The Australian dollar was also weaker after comments from the governor of the Reserve Bank of Australia that led analysts to believe that interest rates there will not change for the remainder of the year. The Aussie fell 0.2 percent to ¥102.70 against the yen, while it dropped 0.5 percent to $0.8356 versus the greenback.

The US dollar, meanwhile, moved very little. It remained steady in relation to the euro at $1.3320, while it gained 0.1 percent to $1.9695 against sterling.