The yen rebounded from a record low against the euro and rose versus
the dollar as a decline in stock markets around the world reduced
demand for higher- yielding assets funded in Japan.
The yen also erased a weekly decline against the euro after European
Central Bank council member Miguel Angel Fernandez Ordonez said an
interest-rate increase next month ``is not certain'' and the European
Commission said confidence among European executives and consumers
dropped this month. The Swiss franc headed for weekly gains against the
dollar and euro. The U.K. pound dropped against the dollar after the
economy grew less than previously estimated in the first quarter.
``We're finally seeing some catch-up in terms of the rising risk
aversion in other markets feeding into currencies,'' said Adam Cole,
global head of currency strategy in London at Royal Bank of Canada, the
nation's largest lender. ``That's leading to strengthening in the
safe-haven currencies and the yen has been the main beneficiary so
far.''
EUR/USD: posted low around $1.5624 before bounsed back to $1.5680. Offers $1.5790/1.5800, $1.5820/25, $1.5840/50, bids $1.5720/10
GBP/USD: got support at $1.9800 in the wake of GDP revision and reached $1.9900 ahead of American session start.
USD/JPY:due to carry trades reduction and general US
dollar pressure fell under yesterday's Y106.60 low, also taking out
four-month trendline support at Y106.47 and triggering further stops
en-route to Y106.10, with the rate holding just off the base ahead of
the American open.