Yen strengthens on equities declines

Story link: Yen strengthens on equities declines

The yen gained on the US dollar and the euro on Friday on declined on European equities markets and on Wall Street that encouraged investors to exit risky investments such as carry trades.

At just past 1 p.m. in New York the yen traded at ¥106.8650 to the dollar, at ¥158.4006 to the euro, and at ¥210.2164 to the pound.

The US dollar was also lower versus the euro, on expectations that the Federal Reserve will continue to cut interest rates while the European Central Bank holds Eurozone rates steady.

Gains for the euro were helped by a report showing that the Eurzone service sector expanded more than had been expected and by remarks from an ECB official indicating that the Bank’s biggest worry is still inflation.

In early afternoon transactions the dollar traded at $1.4822 to the euro, while it was at $1.9671 to the pound.

The Canadian dollar, however, was weaker in relation to the US dollar after new data showed that retail sales were weaker than expected in Canada in Decmeber, up only 0.6 percent rather than the 0.8 percent gain that was anticipated.

The Canadian dollar traded at C$1.0163 to the dollar at early afternoon in New York.