Yen Advances on Speculation Japanese Companies Buying Currency
March 29, 2010, 9:08 PM EDT
By Yoshiaki Nohara and Ron Harui
March 30 (Bloomberg) -- The yen rose for the first time in five days versus the euro on speculation exporters took advantage of its slide to the lowest level in almost two weeks to buy the currency.
The yen gained versus 15 of its 16 major counterparts on prospects Japanese companies are converting overseas revenue before the nation’s fiscal year ends tomorrow. The euro traded near a one-week high versus the dollar after Greece sold 5 billion euros ($6.7 billion) of bonds in the first debt sale since European leaders agreed last week on a plan to help the nation cut its deficit.
“There’s talk of exporters’ purchases as well as last- minute repatriation by Japanese firms,” said Yoh Nihei, trading group manager at Tokai Tokyo Securities Co. in Tokyo. “This is causing buying of the yen.”
The yen rose to 124.18 per euro as of 9:50 a.m. in Tokyo, from 124.66 in New York yesterday, when it fell to 125.07, the lowest level since March 17. Japan’s currency advanced to 92.18 per dollar from 92.46.
Japan’s large manufacturers expect the currency to average 91.16 per dollar in the six months to March 2010, according to the Bank of Japan’s Tankan survey.
March 29, 2010, 9:08 PM EDT
By Yoshiaki Nohara and Ron Harui
March 30 (Bloomberg) -- The yen rose for the first time in five days versus the euro on speculation exporters took advantage of its slide to the lowest level in almost two weeks to buy the currency.
The yen gained versus 15 of its 16 major counterparts on prospects Japanese companies are converting overseas revenue before the nation’s fiscal year ends tomorrow. The euro traded near a one-week high versus the dollar after Greece sold 5 billion euros ($6.7 billion) of bonds in the first debt sale since European leaders agreed last week on a plan to help the nation cut its deficit.
“There’s talk of exporters’ purchases as well as last- minute repatriation by Japanese firms,” said Yoh Nihei, trading group manager at Tokai Tokyo Securities Co. in Tokyo. “This is causing buying of the yen.”
The yen rose to 124.18 per euro as of 9:50 a.m. in Tokyo, from 124.66 in New York yesterday, when it fell to 125.07, the lowest level since March 17. Japan’s currency advanced to 92.18 per dollar from 92.46.
Japan’s large manufacturers expect the currency to average 91.16 per dollar in the six months to March 2010, according to the Bank of Japan’s Tankan survey.