Yen drops against most major currencies

Japan’s yen declined in relation to a number of currencies on Tuesday after the European Central Bank put $500 billion into the banking system, sending investors back to risky carry trades.

Among the declines the yen dropped the most against the Brazilian real, trading at ¥62.605 to the real in early afternoon trade in New York, while it traded at ¥113.3200 to the US dollar, at ¥163.2658 to the euro, at ¥228.0677 to the pound, and at ¥97.2965 to the Australian dollar.

The pound was weaker versus the euro after inflation grew less than expected in the UK in November, leading many to suspect that the Bank of England will cut interest rates again.

It took €1.3969 to buy a pound in New York, while the US dollar traded at $2.0126 to the pound.

The dollar was about even versus the euro, trading at $1.4407 to the euro after both housing starts and new construction permits dropped in November

Meanwhile, the Canadian dollar was weaker, trading at C$1.0069 to the dollar, at C$1.4506 to the euro, and at C$2.0264 to the pound after new data showing that consumer prices grew by 1.2 percent in the year ending in November.

Story link: Yen drops against most major currencies