Yen Falls as Stock-Futures Gains


The yen and Swiss franc fell against most of the major currencies as an advance in U.S. stock-index futures prompted traders to buy higher-yielding assets funded by cheap loans in Japan and Switzerland.

Japan's yen weakened against the dollar on speculation the Federal Reserve's interest-rate cuts and other efforts to spur lending will help revive economic growth. Canada's dollar extended its biggest weekly drop against the U.S. dollar since 1985 as gold and crude oil fell.

The yen dropped 0.2 percent to 99.73 per dollar at 8:50 a.m. in New York, from 99.58 on March 21. It fell 0.2 percent to 153.88 per euro, from 153.55. The Swiss franc fell 0.5 percent to 1.0142 per dollar, from 1.0093. The dollar was little changed against the euro, trading at $1.5427, compared with $1.5431 on March 21. The Canadian dollar declined 0.3 percent to C$1.0263 per U.S. dollar, from C$1.0233.

U.S. stock futures rose, indicating shares may extend the biggest weekly rally in almost two months, on speculation JPMorgan Chase & Co. will increase its bid for Bear Stearns Cos.

June futures on the Standard & Poor's 500 Index rose 0.8 percent, while Dow Jones Industrial Average contracts climbed 0.5 percent.


TradingEconomics.com, Bloomberg
3/24/2008 6:30:46 AM