The yen fell the most against the euro since January 2001 and
dropped versus the dollar as a rebound in global stocks encouraged
investors to reduce bets against higher-yielding currencies.
The currency declined versus the Australian and New Zealand dollars
on speculation carry trades will get a boost and Japan's central bank
will sell the yen for the first time in four years to help exporters.
The Standard & Poor's 500 Index increased 0.4 percent after Japan's
Nikkei 225 Stock Average rebounded from the lowest level in 26 years.
The S&P 500 fell yesterday to the lowest level since March 2003 on
concern the credit crunch will cause the global economic slump to
deepen.
In a sign financial institutions are becoming less nervous about
extending loans, the London interbank offered rate, or Libor, that
banks charge each other for three-month loans in dollars fell 0.04
percentage point to 3.47 percent, its 12th straight drop, according to
the British Bankers' Association. The Federal Reserve began buying
short-term corporate debt yesterday to revive lending markets.
The yen pared losses against the dollar after the Conference
Board, a New York-based research group, said its consumer confidence
index decreased to 38, the lowest reading since monthly records began
in 1967.
EUR/USD having tested 2 years low on $1,2330, the pair could on results of session will become stronger in above level $1,2800.