13 apr 2009

Jakarta, Financeroll.com - The yen fell to a six-month low against Australia’s dollar on optimism the global financial crisis is easing, spurring investors to buy higher-yielding assets financed with the Japanese currency.

The yen also declined against the New Zealand dollar on speculation U.S. banks will this week post better-than-expected results for the first quarter, boosting demand for so-called carry trades. The euro approached a three-week low against the dollar on concern European Central Bank officials will signal this week that they may cut interest rates further.

Risk-taking appetite may keep improving as first-quarter earnings at U.S. banks could prove to be good. The bias would be for the yen to be sold to 101 against the dollar and 132.50 versus the euro today.

The yen weakened to 72.46 against Australia’s dollar. Japan’s currency fell to 58.70 per New Zealand dollar. It traded at 100.36 versus the greenback from 100.30, and was little changed at 132.05 per euro from 132.18.

The euro declined to $1.3158 from $1.3189. Europe’s currency was at 89.79 British pence from 89.84 pence. Against the pound, the dollar gained to $1.4645 from $1.4672.