Fannie Mae, Freddie Mac rescue hurts yen

The Japanese yen declined versus the US dollar, the yen, and other currencies Monday as substantial gains in equities markets after the US government took over mortgage lenders Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) encouraged investor to purchase higher-yielding currencies in deals financed by low-yielding currencies such as the yen and the Swiss franc.

At just past 11 a.m. in New York, the yen traded at ¥153.8455 to the euro and at ¥108.22 to the US dollar, while it was at ¥88.8702 to the Australian dollar and at ¥72.941 to the New Zealand dollar.

The Swiss franc, meanwhile, was trading at SFr1.1258 to the greenback and at SFr1.6005 to the euro.

The renewed popularity with investors of higher-yielding currencies and gains in the prices of gold and platinum helped the South African rand to gains, with the rand at R7.8655 to the US dollar and at R11.181 to the euro in late morning trade in New York.

The US dollar saw gains to $1.4216 to the euro and was little changed at $1.7643 to the pound at late morning in New York ahead of new data due later in the week on retail sales and pending home sales.

Story link: Fannie Mae, Freddie Mac rescue hurts yen