Yen sees gains; pound weakens

The yen was up in relation to all sixteen most active currencies on Thursday after the Bank of Japan warned that the global economy will slow next year.

It took ¥112.9650 to buy a US dollar in early afternoon trade in New York, while the yen traded at ¥162.0822 to the euro, at ¥224.0884 to the pound, at ¥97.0651 to the Australian dollar and at ¥85.7248 to the New Zealand dollar.

The pound dropped against most major currencies on speculation that the Bank of England will cut interest rates next year as the UK economy weakens.

It cost €1.3826 to buy a pound in early afternoon trade in New York.

The US dollar saw some gains on the theory that the Federal Reserve will refrain from issuing in any interest rate cuts in 2008 due to increases in inflation.

In New York, the dollar traded at $1.4348 to the euro and at $1.9837 to the pound.

Story link: Yen sees gains; pound weakens