Yen weaker on return to risk

Story link: Yen weaker on return to risk

The yen weakened Wednesday on a return to interest in higher-yielding currencies by investors, who were encouraged by plans announced by Lehman Brothers (NYSE: LEH) to sell part of its assets and reduce its dividend to recover credit-market losses.

In late morning trade in New York, the yen traded at ¥150.9851 to the euro, having regained some of earlier losses, while it was at ¥107.6850 to the US dollar.

The Japanese currency also lost value to the Australian and New Zealand dollars, trading at ¥86.6003 to the Aussie and at ¥71.877 to the kiwi.

The Canadian dollar benefited early from gains in oil prices after the Organization of Petroleum Exporting Countries said it would cut oil production, but morning gains were pared as oil prices declined after the US Energy Information Administration said that US crude oil and gasoline stockpiles fell more than expected last week.

At just past noon in New York, the loonie traded at C$1.0734 to the US dollar.