Yen stronger versus Aussie, kiwi

Declines in equities markets Tuesday frightened investors away from risky carry trades, strengthening the Japanese yen not only against currencies such as the Australian and New Zealand dollars but also against the US dollar and the euro.

In late-morning trade in New York, the yen traded at ¥102.3098 to the Australian dollar, at ¥80.604 to the New Zealand dollar, at ¥168.1536 to the euro and at ¥107.3950 to the US dollar.

The Australian and New Zealand dollars also declined versus the greenback after new data showed that Australian business confidence was down in June and on speculation that New Zealand interest rates could be cut soon.

It took 95.29 cents US to buy an Australian dollar while the New Zealand dollar dropped to 75.05 cents US to the kiwi.

Meanwhile, the greenback strengthened versus the euro on comments from Federal Reserve Chairman Ben Bernanke, who said in a speech in Virginia that the Fed is considering extending access to direct loans to securities dealers who handle US government debt.

At just before noon in New York the dollar traded at $1.5657 to the euro.

Story link: Yen stronger versus Aussie, kiwi