Yen Gains on Speculation Japanese Companies Bringing Funds Home
March 13 (Bloomberg) -- The yen rose against the dollar, heading for its first weekly gain since January, and advanced versus the euro on speculation Japanese companies are bringing back earnings on overseas assets before the financial year-end.
The yen rose against 15 of the 16 most-active currencies on prospects Japanese exporters and investors are taking advantage of the currency’s decline to a two-month low versus the euro to repatriate funds. The euro traded near a three-week high against the dollar after European Central Bank council member Yves Mersch said he doesn’t see deflation risks in the region, tempering speculation the ECB will cut interest rates.
“Selling of currencies such as the euro against the yen by Japanese exporters and investors before the fiscal year-end is sending the Japanese currency higher,” said Minoru Shioiri, senior foreign exchange manager in Tokyo at Mitsubishi UFJ Securities Co., the brokerage unit of Japan’s biggest banking group. “Gains of the euro yesterday were apparently overdone.”
The yen rose to 97.30 per dollar as of 9:26 a.m. in Tokyo, from 97.72 late in New York yesterday. The Japanese currency climbed to 125.58 per euro from 126.16, after dropping to 126.39 yesterday, the lowest since Jan. 8. The dollar was little changed at $1.2919 per euro from $1.2913.
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