Yen Trades Near 2-Month Low


The yen traded near a two-month low against the dollar as a rally in equities gave investors confidence to buy higher-yielding assets financed in Japan.

The currency may decline for a third day against the dollar as traders increased bets the Federal Reserve will stop cutting interest rates after the U.S. lost fewer jobs in April than economists forecast. The yen fell against the euro as a measure of stock volatility slid to the lowest since October.

The yen traded at 105.32 against the dollar as of 11:15 a.m. in Tokyo from 105.40 late in New York on May 2, when it touched 105.70, the lowest level since Feb. 28. It was at 162.71 per euro from 162.53. The euro was at $1.5449 from $1.5424 late last week, when it reached $1.5361, the lowest since March 24.

Currency trading may be less than normal as Japan's financial markets are closed for a public holiday, Yoshida said.

The yen declined to 82.33 per New Zealand dollar from 82.19 in New York and fell 0.2 percent to 98.72 versus Australia's currency after the MSCI Asia-Pacific ex Japan Index of regional shares climbed 0.3 percent.


TradingEconomics.com, Bloomberg
5/4/2008 8:39:07 PM