Yen Declines as Stock Rally

The yen fell against 15 of the 16 most-active currencies on speculation rising stock prices will give investors confidence to increase purchases of higher- yielding assets funded with loans in the Japanese currency.

The yen declined the most against the Canadian dollar, a favorite for so-called carry trades after Asian stocks rose on speculation Ambac Financial Group Inc., the world's second- biggest bond insurer, may receive $3 billion from major banks to maintain its AAA rating.

The yen fell to 107.42 against the dollar at 9:54 a.m. in Tokyo from 107.17 late in New York on Feb. 22. Against the euro, it declined to 159.26 from 158.99. The euro was little changed at $1.4826. The yen may fall toward 107.50-108 against the dollar today, Amikura forecast.

Yen Declines as Stock Rally, Bloomberg
2/24/2008 7:09:30 PM