Yen, USD weaken on risk sentiment

Story link: Yen, USD weaken on risk sentiment

The yen and the US dollar were weaker Monday as US government initiatives to help the economy pointed toward more willingness by investors to make risky investments and as equities markets gains also helped sentiment.

The US Treasury announced a Public-Private Investment Program to buy troubled assets, using money from the Troubled Asset Relief Program (TARP) to fund its part of the plan.

In late morning trade in New York, the yen traded at ¥131.6883 to the euro while it was down to ¥97.265 to the US dollar, and the dollar traded at $1.3539 to the euro.

The euro was helped by indications in remarks from European Central Bank President Jean-Claude Trichet that Eurozone interest rates will not fall to zero.

The Australian and New Zealand dollars were up versus the greenback on the improved sentiment, with the Aussie worth 69.81 cents US while the kiwi was at 56.89 cents US.

The pound, meanwhile, hit a one-month high versus the dollar and was worth $1.4468 at around 11:30 a.m. in New York while the pound traded at 93.58p to the euro at the same time after UK equities markets, and especially UK banks, saw gains on the session.