The yen declined, heading for a third weekly loss against the euro, as Asian stocks advanced on speculation the worst of the financial crisis is over, spurring demand for higher-yielding assets.
The yen weakened against 11 of the 16 major currencies before a U.S. report today that may show employers cut fewer jobs last month, damping demand for the relative safety of Japan’s currency. The euro strengthened for a fourth day versus the British pound after European Central Bank President Jean-Claude Trichet said yesterday the region's economic performance will improve this year. The Australian and New Zealand dollars gained as commodity prices rose.
The yen fell to 137.37 per euro as of 7:21 a.m. in London, from 136.97 yesterday in New York, heading for a 1.7 percent drop this week. Japan’s currency slid to 96.76 per dollar from 96.58, set for a 1.5 percent weekly loss. The euro traded at $1.4199 from $1.4183. It climbed to $1.4338 on June 3, the strongest this year. The euro rose to 88.23 pence from 87.68.
Australia's dollar climbed 0.5 percent to 77.80 yen and gained 0.3 percent to 80.40 U.S. cents. New Zealand’s dollar climbed 0.4 percent to 61.49 yen. Australia benchmark interest rate is 3 percent and New Zealand’s is 2.5 percent, compared with 0.1 percent in Japan, luring investors to the South Pacific nation’s higher returns.
