Yen Declines as Borrowing Costs Fall

The Japanese yen fell against the U.S. dollar and the other major currencies today after the money-market lending conditions eased and the traders expect a positive opening from the U.S. stock market judging from the current futures trading.

Apart from the three other major currencies, the yen posted a daily drop against its usual carry trade counterparts — the Australian and New Zealand dollars after rising against them for the two consecutive days. The  U. S. dollar accompanied the yen in its decline, falling against the euro and slightly against the British pound.

Like with the other similar corrections before, during the last two months, this one may just last for not very long. If the real trading session on the U.S. stock market starts with the less optimistic action than the futures predict, the return to the «safe-haven» dollar and yen may continue.

USD/JPY rose from 97.60 to 97.70 as of 8:48 GMT today after rising to the daily high at 98.07. EUR/JPY rose from 122.13 to 122.67 with a daily maximum at 123.85. GBP/JPY went up from 150.10 to 150.29 after reaching as high as 151.76 during the early trading.

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