The yen fell against the New Zealand dollar and the South African rand as the prospect of the U.S. Treasury and the Federal Reserve formulating a ``permanent'' plan to stem credit market losses encouraged investors to buy higher-yielding assets funded by low-cost loans in Japan.
The dollar increased 1 percent to 105.65 yen at 4:02 p.m. in New York, from 104.66 yesterday. The dollar gained 0.1 percent to $1.4307 per euro, from $1.4326. The euro appreciated 0.9 percent to 151.15 yen, from 149.88.
Sen. Charles Schumer, a Democrat who chairs the congressional Joint Economic Committee, proposed an agency to inject funds into financial companies in exchange for equity stakes and pledges to rewrite mortgages to make them more affordable. He spoke with reporters today in Washington.