Yen weaker on return to risk

The Japanese yen was weaker Wednesday on more interest in carry trades after Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B) said it will buy $5 billion worth of Goldman Sachs (NYSE: GS) shares.

At the same time, the US dollar weakened on the Fed offer of $30 billion to central banks in Norway, Sweden, Denmark and Australia, on the increased chance that the Fed will cut US interest rates next month, on resistance in Congress to the Bush administration’s plan to buy up bad debts from banks, and after the National Association of Realtors said that sales of existing homes in the US and median prices for those previously owned homes both declined last month.

In late morning trade in New York, the yen traded at ¥155.5411 to the euro and at ¥106.005 to the greenback while it was at ¥88.8110 to the Australian dollar and at ¥72.669 to the New Zealand currency.

In addition, the Brazilian real strengthened versus the US currency, to R$1.8290 to the dollar, on the Berkshire Hathaway deal.

The South African rand was up after Finance Minister Trevor Manuel, who resigned yesterday, said he was willing to return to his post in a new government.

At last report, the rand traded at R8.1395 to the US dollar while it was at R11.946 to the euro and at R15.079 to the British pound.

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