Monday, March 22, 2010

Yen Declines as European Leaders Seek to Calm Greece Concerns

March 23 (Bloomberg) -- The yen fell for the first time in five days against the euro on speculation European Union leaders meeting this week will agree on an aid package for Greece, damping demand for the safety of Japan’s currency.

The yen declined against all of its 16 major counterparts as an advance in Asian stocks encouraged investors to buy for higher-yielding assets. The euro gained after Luxembourg’s Jean- Claude Juncker, who heads the group of euro-region finance ministers, said the EU will not “abandon” Greece. The Swiss franc was near a record high against the euro on speculation its central bank is relaxing a policy of selling the currency.

“Any progress in discussions on financial aid for Greece will take some pressure off from the euro,” said Toshiya Yamauchi, manager of foreign-exchange margin trading at Ueda Harlow Ltd. in Tokyo.

The yen dropped to 122.43 per euro as of 11:16 a.m. in Tokyo from 122.21 in New York yesterday when it climbed to 121.06, the highest since March 5. The euro was at $1.3556 from $1.3558 yesterday, when it fell to $1.3464, the weakest since March 2. The dollar traded at 90.31 yen from 90.14 yen. link

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