Yen, Swiss franc lose ground

Yen, Swiss franc lose ground

Story link: Yen, Swiss franc lose ground

TAGS:

The Japanese yen declined versus the US dollar, the yen, and other currencies Monday as substantial gains in equities markets encouraged investor to purchase higher-yielding currencies in deals financed by low-yielding currencies such as the yen and the Swiss franc.

The gains in global markets came on relief that the US government moved, over the weekend, to take control of troubled US mortgage lenders Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE).

The two lenders between them hold nearly half of the home-loan market in the United States, and a collapse of either could have had global repercussions.

At just past 11 a.m. in New York, the yen traded at ¥153.8455 to the euro and at ¥108.22 to the US dollar, while it was at ¥88.8702 to the Australian dollar and at ¥72.941 to the New Zealand dollar.

The Swiss franc, meanwhile, was trading at SFr1.1258 to the greenback and at SFr1.6005 to the euro.

The return to carry trades and gains in the prices of gold and platinum helped the South African rand to gains, with the rand at R7.8655 to the US dollar and at R11.181 to the euro in late morning trade in New York.

The greenback had gained a bit to $1.4216 to the euro and was little changed at $1.7643 to the pound at late morning in New York, but there was speculation that gains for the dollar could be limited this week ahead of reports on consumer spending and home sales in the US, due later in the week, on speculation that pending home sales fell in July and that retail sales were down in August.