Yen up as investors may bring home funds
The yen rose for the second day against the euro on speculation Japanese investors will bring back redemptions on European government bonds that are paid this week.
By Agencies |
TOKYO: The yen rose for the second day against the euro on speculation Japanese investors will bring back redemptions on European government bonds that are paid this week.
The yen rose to 163.17 versus the euro in London compared with 163.33 in New York late yesterday. It also advanced to 119.83 against the dollar from 120.10. The euro traded at 1.3617 per dollar from 1.3601 yesterday.
Japan's yen climbed against 14 of the 16 most-actively traded currencies before Belgium pays 6.2 billion euros (8.4 billion dollars) in principal and France pays 3.7 billion euros on maturing government debt on May 10, according to data.
The yen has dropped 13 per cent versus the euro in the past year as Japanese investors sent money abroad seeking higher yields.
Japanese investors may hold off reinvesting funds in European bonds on concern government debt will fall before a European Central Bank policy meeting on May 10, when President Jean-Claude Trichet may flag a rate increase in June. Two-year German bund yields have risen to a five-year high since the ECB last raised borrowing costs in March.
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