Yen weakens versus all major currencies

The yen weakened versus all major currencies on Friday as sentiment that the worst of the credit crisis could be past spurred investors to return to deals in which they finance purchases of high-yielding currencies with lower-yielding currencies such as the yen.

At around 11 a.m. in New York, the yen traded at ¥104.4050 to the US dollar, at ¥164.2603 to the euro and at ¥208.3504 to the British pound while the Japanese currency was at ¥96.8461 to the Australian dollar, at ¥82.235 in relation to the New Zealand dollar, and at ¥13.461 to the South African rand.

The pound strengthened versus the euro, trading at 78.84p to the euro in late-morning trade in New York, while the US dollar was at $1.5733 to the euro.

The pound was benefited by a news report that the Bank of England has plans to relieve lenders there of as much as £20 billion in bad mortgages.

At the same time, the pound traded about even in relation to the US dollar, at 50.11p to the greenback.

The Australian and New Zealand currencies both strengthened against the US dollar, which traded at 92.76 cents US to the Aussie and at 78.70 cents US to the New Zealand dollar.

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