Yen, Swiss franc in gains

The yen and Swiss franc both saw gains on Friday as investors backed away from risky carry trades on declines in equities markets that were driven by new reports of losses related to the credit crisis.

At around 11:30 a.m. in New York the yen traded at ¥159.2379 to the euro and at ¥103.0900 to the US dollar while the Swiss franc traded at SFr1.0438 to the US dollar and at SFr1.6124 to the euro at late morning in New York.

The South African rand weakened versus most major currencies on the retreat from risk and as oil prices continued to rise and as South Africa’s gold and foreign currency reserves were reported to have declined.

The rand lost the most to the yen and the Swiss franc, as it took ¥13.392 to buy a rand and a Swiss franc cost R7.3767, but the South African currency was also down at R7.7015 to the US dollar and $11.894 to the euro.

The US dollar at $1.5446 to the euro as the shared currency was helped by speculation that Eurozone interest rates will remain at 4 percent for the foreseeable future.

The pound weakened versus the US dollar and the euro on increased sentiment that UK interest rates will decline on a surge in home repossession in the first quarter.

It took $1.9480 to buy a pound while the British currency traded at 79.30p to the euro in late morning trade in New York.

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