Yen, USD in gains versus euro

The US dollar and the Japanese yen saw gains Monday as investors looked for safe places to put their cash as equities markets declined and on the possibility that US automaker General Motors (NYSE: GM) could face bankruptcy.

In remarks during the day, US President Barack Obama said that neither GM nor Chrysler have yet proposed reorganization plans sufficient to justify further government help, but that his administration will give Chrysler 30 days to firm up a plan to merge with Fiat (BIT: F) and will allow GM 60 days more to propose a viable restructuring plan.

The yen was helped by remarks from US Treasury Secretary Timothy Geithner indicating that some in the US financial sector will need more government help to withstand the current economic crisis.

In late morning trade in New York, the yen traded at ¥97.08 to the greenback and at ¥127.8546 to the shared currency, while the dollar was at $1.317 to the euro.

The Euro was hurt by anticipation of another interest rate cut from the European Central Bank, possibly to 1 percent, later this week.

Meanwhile, the pound weakened on the declines in equities and after the Confederation of British Industry said that the UK financial sector could cut as many as 15,000 jobs in the second quarter.

At shortly before noon in New York, the pound traded at 92.61p to the euro while it took $1.4221 to buy a pound.

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