Sun, Apr 21, 2013 - Page 15 News List

Fund inflows lift Asian currencies, yen remains weak

Bloomberg and CNA, with staff writer

Europe’s 17-nation currency pared a loss versus the greenback as European Central Bank Governing Council member Jens Weidmann said the bank would only cut interest rates if economic data worsen.

A report next week may show eurozone manufacturing fell, a Bloomberg survey shows.

“The volatility has been higher in dollar-yen and the yen crosses than in most of the other majors,” Robert Lynch, a New York-based currency strategist at HSBC Holdings PLC, said in a telephone interview on Friday.

After Japan’s finance minister said the nation avoided G20 censure, “the market obviously took that as a signal that at least at this stage, the risk for official resistance to BOJ-aided yen weakening is less likely,” he said.

The yen fell 1.2 percent to ¥99.52 per US dollar in trading this week in New York, after touching ¥99.69, the weakest level since April 12. The yen has not weakened beyond ¥100 versus the dollar threshold since April 2009. It dropped 0.7 percent to ¥129.88 per euro. The US dollar rose 0.5 percent to US$1.3052 per euro.

The IMF trimmed its global growth forecast and urged European policymakers to use “aggressive” monetary policy as a second year of contraction leaves the eurozone’s recovery lagging behind the rest of the world.

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