Yen Gains on Speculation Japanese Companies Bringing Back Funds

Aug. 14 (Bloomberg) -- The yen gained versus the euro and the dollar on speculation Japanese companies are bringing back earnings on overseas assets.

Japan’s currency advanced against all of its 16 major counterparts on prospects domestic investors may be repatriating income that they will receive from Treasuries. The U.S. government is expected to make $79.2 billion in redemptions and coupon payments for Treasuries on Aug. 17, according to Bank of Tokyo-Mitsubishi UFJ Ltd.

“There’s talk of redemptions and coupons, which Japanese investors are likely to be repatriating,” said Lee Wai Tuck, a currency strategist at Forecast Pte in Singapore. “This is a yen-buying factor.”

The yen rose to 136.08 per euro as of 8:58 a.m. in Tokyo from 136.46 in New York yesterday. Japan’s currency climbed to 95.33 against the dollar from 95.48. The euro traded at $1.4283 from $1.4292.