Yen down against euro and dollar

Published: 17 Apr at 9 AM Tags: Euro, Dollar,

The euro and dollar have risen against the yen as demand for the Japanese currency was tempered by signs that the recent tumble in gold prices has eased. The US dollar is likely to remain weak after CPI data indicates that factory output in the US is down and consumer prices have slipped. This is likely to encourage the Federal Reserve to continue with monetary easing.

The world’s leading finance ministers are due to meet this week to discuss the global economic outlook. The G20 meeting will begin on Thursday in Washington where the subject of the crisis in Cyprus is likely to be high on the list of discussions.

A two per cent hike against the yen has helped the euro hit a seven-week high against the greenback as weak economic data from Germany for April seems to have been shrugged off by investors.

The single currency has gained 1.1 per cent to end at $1.3184. The dollar is up against the yen to 98.15 yen having last traded at 97.55 yen. A sharp rally that could have seen the dollar top 100 yen appears to have been stalled as investors booked profits.

The euro is trading at 128.66 yen, an increase of 2 per cent.