USD, yen weaker ahead of US Treasury announcement

USD, yen weaker ahead of US Treasury announcement

Story link: USD, yen weaker ahead of US Treasury announcement

TAGS:

The yen and the US dollar were weaker again ahead of an announcement, expected Tuesday from US Treasury Secretary Timothy Geithner, of a US economic recovery plan.

Hopes for a plan that will help out the US economy reduced the demand for both currencies as safe investments.

In late morning trade in New York, the yen traded at ¥119.4005 to the euro while it was at ¥91.425 versus the greenback.

At the same time, the dollar traded to $1.306 to the shared currency.

Meanwhile, the pound strengthened on a better-than-expected second half report from Barclays Bank (LSE: BARC; NYSE: BCS; TYO: 8642).

Gains also came ahead of the Bank of England’s quarterly inflation report, due for release on 11 February.

The Bank’s report is expected to show that the growth of consumer prices in the UK accelerated in the most recent quarter.

If the report does, indeed, show growth in consumer prices, the Bank’s Monetary Policy Committee will be less likely to cut interest rates further.

At around 11:20 a.m. in New York, the pound traded at 87.33p to the euro while it took $1.4954 to buy a pound.