Yen weaker as risk aversion fades

Story link: Yen weaker as risk aversion fades

The Japanese yen weakened in relation to all major currencies on Wednesday as new data showed that the US service sector made gains last month, reducing investors’ aversion to risk.

The news on the US service sector came in the form of the Institute for Supply Management’s non-manufacturing index, which was at 49.3 in February.

That reading still showed contraction in the sector, but was better than the reading of 47.3 which had been expected.

At around 11:30 a.m. in New York the yen traded at ¥103.9900 to the US dollar, at ¥158.8968 to the euro and at ¥207.3034 to the pound.

Despite gains versus the yen, however, the US dollar was lower versus the euro, the South African rand, and the Brazilian real.

The greenback reached a new low versus the euro at $1.5280 to the shared currency, while a dollar was worth R7.7625 or R$1.6700.

The pound declined in relation to the euro and the US dollar on reduced consumer confidence in the UK after the Nationwide Building Society’s confidence index came in with a reading of 78 in February, 3 points below its January reading.

However, the pound gained back some of its earlier losses on growth in the service sector after the Chartered Institute of Purchasing and Supply index was reported at 54 in February, up from 52.5 in January.

In late morning trade in New York, it took $1.9935 to buy a pound while the pound traded at 76.65p to the euro after reaching an all time low of 76.89p to the euro in earlier trade.