🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

FOREX-Yen gains broadly as investors cautious about risk

Published 05/17/2009, 08:29 PM
Updated 05/17/2009, 08:48 PM

* Euro falls to a 3-wk low vs yen

* Commodities-linked Aussie dips after oil prices stumble

By Satomi Noguchi

TOKYO, May 18 (Reuters) - The yen gained broadly on Monday, hitting a three-week high against the euro and matching a two-month peak versus the dollar, with its perceived safety status again in focus after Wall Street put in a weak close late last week.

The euro remained under selling pressure after data showed the euro zone economy contracted at its fastest pace on record, overshadowing better-than-expected U.S. data on Friday.

The Australian dollar, a commodities-linked currency, fell after oil prices ended almost 4 percent lower late last week on worries that a global economic recovery may be far off. "The yen in particular is drawing funds away from other currencies including commodities-related units which had been bought sharply before," said Yoshihisa Kanzaki, a trader at Shinkin Central Bank. "The near-term focus is on how much further yen crosses will extend falls, although dollar/yen lows around 94.50 yen look to have firm support after several attempts to break those levels failed on Friday," Kanzaki said.

Traders will watch whether the yen can sustain broad gains before reports due later in the week that are expected to show Japan's economy suffered its deepest quarterly contraction since World War Two, while economists forecast a return to growth in the following quarter.

The euro slid as low as 127.42 yen on trading platform EBS, down 0.8 percent from late New York trade on Friday.

The dollar fell earlier to match a two-month low of 94.73 yen on EBS before trading at 95.02 yen, down 0.1 percent on the day.

The european single currency dipped 0.4 percent to $1.3447.

The Australian dollar fell 0.6 percent to $0.7462 and dipped 0.7 percent to 70.79 yen, its three-week low, according to Reuters data.

The Swiss franc traded near a one-week low versus the euro, after traders said the Bank of International Settlements was buying the euro zone single currency late last week. The Swiss National Bank declined comment on the franc drop on Friday.

The euro was up 0.1 percent to 1.5138 francs, in sight of Friday's high of 1.5145 francs. (Editing by Edwina Gibbs)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.