Risk aversion helps USD, yen

Risk aversion helps USD, yen

Story link: Risk aversion helps USD, yen

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The US dollar and the yen strengthened Friday as investors were frightened away from risky investments on fears that losses in the financial sector will further harm the economy, and as equities markets declined.

The euro was hurt by substantial contraction in Europe’s manufacturing and services sectors in February at a time when some advance was expected.

Additionally, the shared currency was harmed by comments from an ECB official who said that not everything possible has been done to help the Eurozone’s economy.

At just past 11 a.m. in New York the greenback traded at $1.2612 to the euro while the yen traded at ¥118.7476 to the shared currency and at ¥94.155 to the dollar.

The pound looked ready to end the week lower in relation to the US dollar on new data showing that home repossessions in the UK hit a 12-year high last year and after a Bank of England official said that the nation’s recession could last ten years if steps to fight it are not taken.

New data from the Council of Mortgage Lenders said that banks took back 40,000 properties in 2008, 54 percent more than in 2007, while it forecast that 75,000 properties will be repossessed this year.

Losses were held back after the Office of National Statistics said that UK retail sales were up by 0.7 percent in January.

The pound traded at 88.2p to the euro at late morning in New York, while it took $1.43 or ¥134.6418 to buy a pound.