High-yield currency demand hurts yen

The Japanese yen was weaker Thursday after a number of positive quarterly reports raised investor demand for higher-yielding currencies and on sentiment that the swine flu outbreak will not seriously impact the global economy.

At just past 11 a.m. in New York, the yen traded at ¥130.4679 to the euro, at ¥98.425 to the US dollar and at ¥82.6962 to the Canadian dollar.

The Canadian currency strengthened on the demand for higher-yielding currencies, but some of the gains were lost after a US official said that US automobile manufacturer Chrysler, which employs 11,000 Canadians, will file for bankruptcy today.

The Canadian dollar traded at C$1.1902 to the greenback at late morning in New York.

Despite the belief that the flu outbreak will not seriously affect the global economy, the Mexican peso was weaker after Mexican Finance Minister Agustin Carstens said in a television interview that economic activity there will slow for two to three months due to the outbreak.

The peso traded at 13.8442 pesos to the US dollar in morning trade in New York.

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