The yen gained, set for
its first weekly advance against the euro since May, as a decline in stocks
prompted traders to pare holdings of higher-yielding assets funded in Japan.
The dollar declined against
the yen and the euro before government reports forecast to show U.S.
durable-goods orders and new-home sales dropped in June.
The yen rose 2.5% against
the New Zealand
dollar this week, its biggest gain since June 6. The Reserve Bank of New Zealand
said yesterday it may reduce borrowing costs further after policy makers cut
the benchmark interest rate by a quarter point to 8%. Japan's
currency also gained 1.3% against the Australian dollar and 0.9% per British
pound this week.
EUR/USD rose from $1.5660 to
$1.5730 before retreating to $1.5703.
GBP/USD also rose from $1.9830
to $1.9890.
USD/JPY fell from Y107.45 to
Y106.55.
Today’s focus on US data, including
Durable goods orders, new home sales and Un Michigan consumer confidence index.
The Commerce Department will today report sales
of new houses dropped to an annual pace of 503,000 from 512,000 in May, a
separate survey of economists shows.