Tuesday, June 2, 2009

Yen Gains Versus Euro, Dollar on Speculation Exporters Buying

June 2 (Bloomberg) -- The yen strengthened against the euro on speculation Japanese exporters bought the currency to bring home overseas earnings after it fell to the lowest level in eight weeks.

The yen also advanced versus the dollar after yields on U.S. Treasuries surged by the most in eight months yesterday on concern the U.S. government’s increasing debt load will jeopardize its top credit rating.

“The higher euro-yen level is good for exporters so that kind of flow may cap the downside to the yen,” said Masafumi Yamamoto, head of foreign-exchange strategy for Japan at Royal Bank of Scotland Group Plc in Tokyo and a former Bank of Japan currency trader. “Some short-term traders who were long yen crosses may also be taking profit.”

The yen rose to 136.19 versus the euro as of 9:13 a.m. in Tokyo after falling 1.4 percent yesterday in New York when it reached 137.24, the weakest since April 6. The yen strengthened to 96.18 per dollar from 96.59. The dollar traded at $1.4149 per euro. It fell to $1.4246 yesterday, the weakest since Dec. 29.

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