Yen climbs to a 3-month high as investors unwind riskier stocks
06 March 2007
Mumbai: The Japanese currency climbed to a three-month high against the US dollar as Asian stocks extended a global slump, and investors unwound riskier investments funded by yen loans.
The yen rose to 115.63 against the dollar at 2:39 p.m. in Tokyo after reaching 115.39, the strongest since December 8, from 116.75 in New York on March 2. It also advanced to 152.32 against the euro after touching 151.76, the highest since November 24.
The Japanese yen has gained 4.3 per cent against the dollar over the past five days.
The yen also gained from a government report that showed companies invested at a faster pace than expected, adding to the Bank of Japan''s case for raising interest rates. The yen gained nine per cent in five days against the South African rand and 7.7 per cent versus the New Zealand dollar as traders bought yen to pay loans.
The yen rose 1.9 per cent against the pound, with the currency climbing to a three-month high of 222.52. The yen rose to 15.4580 to the rand from 15.7502, 78.88 against the New Zealand dollar from 80.39 and 89.88 versus the Australian dollar from 91.36.
Speaking to reporters in Tokyo, Japanese finance minister Koji Omi said foreign exchange rates should reflect economic fundamentals. He declined to comment on specific exchange rate levels.