Credit worries boost yen, Swiss franc

The Japanese yen and the Swiss franc both saw advances Monday as the financial sector continued to suffer from credit worries on reports that insurer AIG (NYSE: AIG) could take nearly $2.5 billion in write downs related to mortgages and as another US regional bank was closed by authorities at the end of last week.

At nearly noon in New York the yen traded at ¥109.4050 to the US dollar and at ¥161.7223 to the euro while the Swiss franc traded at SFr1.6189 to the euro and at SFr1.0952 to the greenback.

Both the Australian and New Zealand dollars weakened versus the US dollar and the yen on the chance that lower commodities prices could hurt the economies there.

The Australian dollar was worth 86.65 cents US and ¥94.8049 in late morning trade in New York, while the New Zealand dollar traded at 70.77 cents US and at ¥77.428.

A report on inflation that is expected to show inflation in South Africa was at 12.9 percent in July, over twice the South African Reserve Bank’s 6 percent inflation target, and another investor retreat from interest in high-yielding currencies, send the South African rand into decline.

The rand traded at $7.7325 to the US dollar, at R11.434 to the euro, and at R7.0655 to the Swiss franc.

Meanwhile, the greenback managed to gain on the euro, to $1.4782 to the shared currency, on a report that existing home sales in the United States were up more than anticipated in July.

Story link: Credit worries boost yen, Swiss franc