Yen Rises

The yen rose for the first time in seven days against the euro as a decline in Asian and European stocks prompted investors to pare holdings of higher-yielding assets funded in Japan.

The currency gained against the Australian and New Zealand dollars, two favorites for so-called carry trades, after Bank of America Corp. reported worsening credit losses. The euro fell against the dollar after the Federal Association of German Banks took over Duesseldorfer Hypothekenbank AG, a German government and mortgage lender, the Financial Times Deutschland reported.

The yen rose to 163.47 per euro at 8:01 a.m. in London from 164.32 late yesterday in New York, when it fell to a three-month low of 164.86. Japan's currency gained to 103.16 against the dollar from 103.27. The euro declined to $1.5846 euro from $1.5912. It touched $1.5983 on April 17, the highest level since its 1999 debut.

The yen gained as the MSCI Asia Pacific Index of regional equities fell 1 percent on concern widening credit losses will slow global economic growth and make banks reluctant to lend. The Dow Jones Stoxx 50 Index of European shares fell 0.5 percent., Bloomberg
4/22/2008 6:24:25 AM