Yen declines over week

The yen declined this week as investors sold the currency to pursue carry trades once again, sending the currency 0.5 percent lower versus both the euro and sterling, to ¥163.50 and ¥234.10 respectively, while it was down 1.6 percent to ¥86.97 in relation to the New Zealand dollar and dropped 1.9 percent to ¥101.72 against the Australian dollar.

The US dollar was lower on the week as well, on lower consumer confidence in September, fewer homes sold in August, and the assumption that the Federal Reserve will cut interest rates again in October.

Over the week, the US currency dropped 0.4 percent to SFr1.670 in relation to the Swiss franc, while it fell 0.5 percent to ¥114.90 against the yen, was down 1 percent to $2.04 versus the pound and slid 1.1 percent to $1.4230 as it reached a new series of lows in relation to the euro.

The US dollar also fell to several emerging market currencies during the week as the Turkish lira added 1.5 percent to TL1.2084 to the dollar and the South African rand gained to R$1.8375 to the dollar.

Some analysts however do not believe that the greenback will remain weak indefinitely as exports from Europe suffer as the euro gains in strength.

Sterling was also weaker in relation to the euro as it fell 0.2 percent during the week to £0.6980.

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