Yen see gains

Yen see gains

Story link: Yen see gains

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The Japanese yen gained in relation to a number of currencies Tuesday after the euphoria over China’s announced stimulus package receded, sending equities markets lower and scaring investors away from risky currency trades.

The gains also came ahead of a meeting of the G20 nations - Australia, Argentina, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK, the US and the European Union - scheduled to begin Friday in Washington, D.C., where they will address the current global financial crisis.

At just past 10:30 a.m. in New York the yen traded at ¥97.645 to the US dollar and at ¥123.1303 to the euro, while it was at ¥44.118 to the Brazilian real and at ¥9.4807 to the South African rand.

The euro weakened versus the greenback after an official of the European Central Bank said he thinks the Bank will cut forecasts for inflation and economic growth soon, which will make it easier for the Bank to cut interest rates.

It took $1.261 to buy a euro at last report.

The pound, meanwhile, fell against the euro and the dollar after the Royal Institution of Chartered Surveyors said UK home sales were down again, as Taylor Wimpey (LSE: TW) said orders for its homes are down 40 percent from last year, and after the British Retail Consortium said retail sales in the UK were down 2.2 percent in October.

During the morning session in New York, the pound traded at 81.5p to the euro while it took $1.5471 to buy a pound.