Yen weaker as investors seek risk

The Japanese yen weakened Thursday as investors sought out more risky trades for higher-yielding currencies as sentiment turned positive on hopes that the global economic crisis has reached bottom.

In addition, the yen was hurt by speculation that a report due Friday from Japan’s trade ministry will say that retail sales there were down again in February, for the sixth month in a row.

The Swiss franc was also hurt by investor enthusiasm for higher-yielding currencies.

In late morning trade in New York, the yen traded at ¥133.6722 to the euro and at ¥98.61 to the greenback, while the Swiss franc traded at SFr1.5275 to the shared currency and it took $1.3556 to buy a euro.

Meanwhile, the South African rand and Mexican peso both gained on the US dollar as demand for the higher-yielding currencies – interest rates in South Africa currently stand at 9.5 percent, while in Mexico the interest rate is at 6.75 percent – accelerated.

The rand traded at R9.3755 to the US dollar at nearly noon in New York, while the Mexican peso traded at 14.227 pesos to the greenback.

Story link: Yen weaker as investors seek risk