iBankCoin
Joined Nov 11, 2007
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The Yen Climbs for a Fourth Day Against the Dollar

“The yen strengthened for a fourth day against the dollar and the euro weakened as Group of 20 finance chiefs and central bankers met in Moscow. U.S. equity- index futures pared declines before reports on manufacturing and consumer confidence.

Japan’s currency gained 0.2 percent versus the dollar at 7:05 a.m. in New York. The euro retreated 0.3 percent to $1.3222. Standard & Poor’s 500 Index futures slid 0.1 percent and the Stoxx Europe 600 Index swung between gains and losses. Yields on Germany’s 10-year bunds fell for a second day, dropping two basis points to 1.62 percent. Oil declined 0.5 percent in New York, while wheat rose 0.7 percent on increased U.S. exports.

“What we’re seeing right now is a bit of a fright with the G-20 meeting happening in Moscow,” said Sonja Marten, a currency strategist at DZ Bank AG in Frankfurt. “The trend is going to resume and dollar-yen is going to go back up quite possibly next week once the G-20 is behind us.”

Japan’s ruling party lawmaker Kozo Yamamoto said that a race to devalue currencies would spur global growth and a rate of 95 yen to 100 yen per dollar would be appropriate. European Central Bank council member Jens Weidmann said an appreciating euro alone won’t trigger a cut in interest rates. Reports today will probably show U.S. industrial output and consumer confidence increased while manufacturing in the New York region contracted for a seventh month, according to economists surveyed by Bloomberg.

Yen Gains…”

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