Yen weaker on risk demand

Story link: Yen weaker on risk demand

The Japanese yen weakened after better than expected quarterly reports from many companies sent investors looking to buy higher-yielding currencies, as well as on sentiment that the swine flu outbreak won’t have much effect on the global economy.

At just past 11 a.m. in New York, the yen traded at ¥130.4679 to the euro, at ¥98.425 to the US dollar and at ¥82.6962 to the Canadian dollar.

The loonie was stronger as investors especially looked to buy currencies linked to commodities-producing economies on the belief of many that the worst of the recession has passed.

However, some of the gains for the Canadian currency were lost after an unnamed US official said that US carmaker Chrysler, which employs around 11,000 people in Canada, will file for bankruptcy today.

The Canadian dollar traded at C$1.1902 to the greenback at late morning in New York.

Despite sentiment that the flu outbreak will not seriously affect the global economy, the Mexican peso weakened after Mexican Finance Minister Agustin Carstens said in a television interview that economic activity there will slow for two to three months due to the outbreak, which has hit Mexico hardest.

The peso traded at 13.8442 pesos to the US dollar in morning trade in New York.