Yen weakens; sterling stronger

Japanese yen weakened late in the session on Monday, on gains by Asian equities markets. The yen dropped 0.5 percent to ¥156.30 versus the euro, while it fell 0.7 percent against the US dollar to ¥117.50 and was 0.8 percent lower to ¥228.70 in relation to sterling in early afternoon trade in New York. Meanwhile, a 27 basis point rise in Chinese interest rates sent the Renminbi to its highest level against the greenback since its revaluation in July 2005, to Rmb 7.3300

Sterling was stronger on higher house prices in March, which will likely spur the Bank of England to raise interest rates in the UK. The UK currency added 0.2 percent in relation to the euro, to £0.6835, while it gained 0.3 percent to $1.9460 versus the US dollar.

The US currency managed to hold steady in relation to the euro, trading at $1.3350 ahead of the next meeting of the US Federal Reserve, scheduled for Wednesday. The Fed is widely expected to leave US interest rates at 5.25 percent for another month.

Currencies that are under consideration for joining the euro strengthened against the shared currency. The Slovak koruna was up 3.2 percent versus the euro to SK32.84, a record high. Elsewhere, the Czech koruna gained 0.4 percent in relation to the euro, to Kc27.73, while the Polish zloty added 0.6 percent to 3.8660zlotys and the Hungarian forint was 1.5 percent higher to Ft245.46.

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