Yen gains on G7 warning

Story link: Yen gains on G7 warning

The yen gained on the US dollar, the euro, and all other major currencies on Monday after the G7 nations - the United States, the UK, Canada, Italy, France, Germany, and Japan - warned about equities market volatility and the effect it will have on the global economy during a weekend meeting.

G7 officials predicted that banks will take around $400 billion in losses on writedowns related to the subprime mortgage mess in the United States.

Worldwide, writedowns already taken due to the subprime crisis have amounted to around $146 billion since the beginning of 2007.

At shortly before noon in new York the yen stood at ¥106.7250 to the US dollar, at ¥154.8579 to the euro, and at ¥207.9376 to the pound.

The yen gained the most versus the South African rand, to ¥13.685 to the South African currency.

The rand was also lower versus the US dollar, at R7.7975 to the greenback.

The euro gained on the US dollar, to $1.4510 to the shared currency after comments from a European Central Bank council member that the Bank is still worried about inflation, but gains were limited by sentiment that the ECB will cut interest rates soon.

The Canadian dollar was lower in relation to the US dollar, dropping to C$1.0010 to the US currency after the governor of Canada’s central bank made comments implying that interest rates there will likely be cut soon.