Yen gains against euro, pound

Signs that problems in the subprime mortgage sector in the United States could be affecting other economies around the world sent the US dollar higher Wednesday.

There were exceptions to the dollar’s climb. The Australian dollar added 0.1 percent to $0.8830 in relation to the US currency, while the Kuwaiti dinar rose to KD0.2820 to reach an 18-year high versus the greenback.

However, the US currency added 0.9 percent to $1.3710 in relation to the euro in midday trade in New York, while it was 0.6 percent higher to $2.0500 versus sterling and gained 0.2 percent to ¥120.30 in relation to the yen.

Despite the decline versus the dollar, the yen was also generally higher as investors pulled back from risky carry trades, which often involve selling the yen to invest in higher-yielding assets.

Both the euro and the pound dropped in relation to the Japanese currency, with sterling down 0.4 percent to ¥246.50 and the shared currency 0.7 percent lower to ¥164.80.

As with the US dollar, the Australian dollar was also higher versus the yen as it added 0.4 percent to ¥106.15 against the Japanese currency.

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