Yen weakens; pound stronger

The yen was lower Monday as investor sentiment improved on hopes that the worst of the economic crisis could be over, although by late morning trade in New York, the Japanese currency had gained back some of its earlier losses.

With interest rates at 3.25 percent and 3 percent respectively compared to near-zero rates in Japan and the United States, the Australian and New Zealand dollars benefited from the improved risk appetite.

At around 11:30 a.m. in New York, the yen traded at ¥134.7986 to the euro and at ¥100.735 to the US dollar, while at the same time it traded at ¥71.5905 to the Aussie and at ¥59.3296 to the kiwi a nearly midday in New York.

The Australian currency was worth 71.07 cents US and the New Zealand dollar cost 58.86 cents US.

The pound, meanwhile, strengthened versus the greenback and the yen after a successful stock sale by HSBC Holdings (LSE: HSBA; NYSE: HBC; Euronext: HSBC; SEHK: 005), in which around 97 percent of the shares offered were sold, but some analysts were worried that the pound could decline again, citing a report from the Society of Motor Manufacturers & Traders which showed that UK car sales declined 30.5 percent in March.

The pound traded at 90.78 to the euro while it cost $1.4741 to buy a pound and the UK currency was worth ¥148.4891.

Risk appetite also sent the South African rand higher versus the US dollar as it traded at $9.0725 to the greenback in late morning trade in New York.

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