Yen gains on US dollar

Story link: Yen gains on US dollar

The yen hit its highest level versus the US dollar in a year and a half on Friday as falling equities markets and continuing worries over credit markets drove investors away from high-risk carry trades.

The yen traded as high as ¥110.51 to the US dollar early in the day in New York and was at ¥110.9950 to the dollar in afternoon trade, while it was at ¥231.9848 to the pound, at ¥162.8130 to the euro, at ¥101.4605 to the Australian dollar and at ¥98.6754 to the Swiss franc.

The Swiss franc, meanwhile, gained more in relation to the US dollar in nearly a year this week as it hit a 12-year high versus the greenback as the Swiss currency was also helped by investor flight from risk and by the possibility that the difference between interest rates in Switzerland and the US could diminish.

The franc traded at SFr1.1249 to the dollar Friday afternoon in New York, while it was at SFr1.6500 to the euro and at SFr2.3510 to the pound.

Sterling, meanwhile, had its fourth week of gains in a row versus the US dollar as it reached $2.1161 to the pound in London trade, but some analysts feared that the pound could lose some of its gains due to instability in the banking sector

In afternoon trade in New York sterling had lost some of those gains to trade at $2.0900 to the pound, while the euro stood at €1.4249 to the pound.