Yen gains on flight from risk

Yen gains on flight from risk

Story link: Yen gains on flight from risk

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The yen strengthened Wednesday in relation to the US dollar, the euro, and other currencies on concerns that the US is now in a recession and that other economies around the globe will follow and after equities markets around the globe suffered further declines that left investors largely uninterested in entering into risky carry trades.

At nearly noon in New York, the yen traded at ¥101.445 to the US dollar while it was at ¥137.5999 to the euro, at ¥10.695 to the South African rand, at ¥69.3123 to the Australian dollar and at ¥62.784 to the New Zealand dollar.

The US dollar was hurt against the yen by comments from the president of the San Francisco Federal Reserve that the US economy looks like it is in a recession and by a report from the Commerce Department showing that US retail sales dropped by 1.2 percent in September, the biggest month-to-month decline in over three years.

The greenback gained, however, against commodities-related currencies as crude oil prices fell below $75 per barrel in New York trade.

At late morning in New York, the dollar traded at 68.32 cents US to the Australian dollar and at 61.83 cents US to the New Zealand dollar, while it took C$1.1794 to buy a dollar, the Brazilian dollar traded at R$2.0780 to the greenback and the Mexican peso stood at 12.708 pesos to the US currency.