Yen declines on return to carry trades

The yen was lower versus all major currencies on Monday on optimism fueled by hopes that a major US bond insurer will keep its credit rating and on the news that US home sales declined less than had been expected.

The yen lost the most in relation to the Canadian dollar, trading at ¥108.2177 to the loonie just past noon in New York while it traded at ¥107.9550 to the US dollar, at ¥160 to the euro, at ¥212.4204 to the pound, at ¥99.7127 to the Australian dollar, and at ¥13.999 to the South African rand.

The rand advanced on most major currencies on near-record prices for gold and platinum as well as advances in equities markets.

In early afternoon trade in New York, the rand traded at R7.7155 to the US dollar, to R15.190 to the pound, and at R11.433 to the euro.

The Hungarian forint advanced after the central bank there said it will abandon trading limits versus the euro as a way to control inflation, which was at 7.1 percent in January.

The forint traded at Ft262.73 to the euro, at Ft177.37 to the US dollar, and at Ft348.51 to the pound at a few minutes after noon in New York.

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