Yen falls as equities see gains

Yen falls as equities see gains

Story link: Yen falls as equities see gains

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The Japanese yen lost ground to the US dollar and the euro Tuesday after gains in equities markets on the chance that investors will be more enthusiastic about buying higher-yielding currencies.

In late morning trade in New York, the yen traded at ¥95.295 to the US dollar while it was at ¥118.9567 to the euro.

The yen also declined in relation to the Australia and New Zealand dollars, to ¥59.3783 and ¥52.533 respectively.

Meanwhile the euro gained earlier versus the greenback but later lost some of those gains as the dollar traded at $1.2483 to the euro as both the European Central Bank and the Federal Reserve are expected to cut interest rates again soon.

The US currency also lost ground early to a number of emerging markets currencies as demand for them grew on the gains in equities but, again, as trade progressed in New York, some of those gains were given back.

The Brazilian real traded at R$2.2835 to the US dollar as Banco Central do Brasil was expected to hold interest rates at 13.75 percent when it meets Wednesday, while the Mexican peso traded at 13.29 pesos to the dollar, the Chilean peso was at 676 to the dollar and the Colombian peso traded at 2,395.5 to the greenback.

In another region of the world, the South African rand was at R10.66 to the US currency.

The pound gained in relation to the US dollar, the euro and the yen in London trade, but by late morning in New York the UK currency had given up some of those gains after a Bank of England official said in a speech that financial markets remain under “acute� stress and on data showing that home repossession in the UK were up by 71 percent in the second quarter.

At late morning in New York, the pound traded at 80.15p to the euro while it took $1.5574 or ¥148.4128 to buy a pound.