Yen strengthens as Bank for International Settlements comments on recent declines

Story link: Yen strengthens as Bank for International Settlements comments on recent declines

The Japanese yen strengthened Monday, adding 0.2 percent against both the euro and the US dollar by midday trade in New York, to ¥166.50 and ¥123.60 respectively. The yen gained 0.3 percent to ¥247.05 versus sterling. The gains for the Japanese currency came as the Bank for International Settlements said it was concerned about the use of the yen to finance risky carry trades. In its annual report, the BIS called the current weakness in the yen “anomalous” and said that it is not consistent with Japan’s current accounts situation.

Sterling briefly rose above $2 in relation to the US dollar, to $2.0005, before retreating to an even $1.9990 after new data on home sales in the US. At least one analysts felt that sterling could be ready to advance on the dollar to near April’s 26-year high of $2.0133. The greenback was also steady versus the euro at $1.3460. The New Zealand dollar stood at $0.7655 versus the US dollar, bouncing back after a late decline on Friday as rumors flew that the Reserve Bank of Australia was going to intervene in the currency again.