Yen, sterling stronger on session

The yen strengthened on Thursday as investors retreated from risky investments such as carry-trades after broker recommendations were cut on two of the largest US banks.

At just past 3 p.m. EDT in New York, the yen was trading at ¥166.0055 in relation to the euro, while it was at ¥114.8350 versus the US dollar, at ¥239.2082 against sterling, and at ¥105.3266 in relation to the Australian dollar.

Meanwhile, sterling gained on most major currencies on the belief that the Bank of England will not cut interest rates at least until next year after the Bank’s chief economist said Wednesday that it “cannot afford” to let up on its campaign against inflation.

Sterling was trading at $2.0831 in relation to the US dollar in afternoon trade in New York, while it stood at €1.4410 against the euro.

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