Japanese yen rises and stock markets fall worlwide

The yen rose to the highest in more than four months against the euro and dollar as stock losses linked to subprime debt pushed investors to pare holdings of higher-yielding assets funded by loans in Japan.

The yen has advanced against all 16 most-active currencies this week as traders exited so-called carry trades because of a global rout in equities and emerging-market assets. Japan's currency climbed for a fourth day versus the dollar and euro as the Nikkei 225 Stock Average opened 1 percent lower.
U.S. stocks are also falling, with the Standard & Poor's 500 Index losing all of its gains for the year on speculation the biggest mortgage lender in the U.S. will be forced into bankruptcy. Two-year Treasuries rallied as investors turned to the safety of government debt.

TradingEconomics.com, Bloomberg
8/15/2007 5:28:44 PM