Yen drops on equities gains

Story link: Yen drops on equities gains

The yen continued its roller-coaster ride Thursday, falling once again as most equities markets around the world saw gains on the session and encouraged investors to resume selling the yen in order to enter into risky carry trades.

The Japanese currency was also hurt by reports that the government there will lower its near-term economic forecast and on the news that domestic purchase of foreign bonds was at a two-year high last week.

By the middle of the session in New York the yen had dropped 0.9 percent to ¥160.25 in relation to the euro, while it had fallen 1 percent each versus the US dollar and sterling to ¥115.30 and ¥233.90 respectively.

Sterling was even at £0.6850 against the euro after dropping to a more than 1-year low of £0.6874 to the euro on a report that house prices in the UK were down for the first time in two years, while it dropped 0.1 percent to $2.0280 versus the greenback.

Meanwhile, the US dollar also traded even in relation to the shared currency at $1.3895.