Yen Little Changed Against Dollar

The yen was little changed against the dollar as a quarterly Tankan survey showed sentiment among large manufacturers declined, raising expectations the Bank of Japan will cut interest rates this year.

The yen traded at 99.79 per dollar as of 8:58 a.m. in Tokyo from 99.69 in New York yesterday. Japan's currency was at 157.24 versus the euro from 157.40. The currency may fall to 100.50 per dollar today, Saito said. The dollar traded at $1.5758 per euro from $1.5788 yesterday, when it completed the biggest quarterly decline in almost four years.

The Tankan's headline index of confidence among large manufacturers dropped to 11 points in March, from 19 in December, the Bank of Japan said today in Tokyo. The median estimate of 30 economists surveyed by Bloomberg was for a drop to 13 points. A positive number means optimists outnumber pessimists.

The yen yesterday completed the biggest quarterly gain against the dollar since September 1999, rising 12 percent as the Federal Reserve cut interest rates to revive the U.S. economy. Japan's benchmark borrowing cost is 0.5 percent, the lowest of industrialized economies.

Yen Little Changed Against Dollar, Bloomberg
4/1/2008 7:13:39 AM