Yen Rises

The yen rose for the first time in seven days against the euro as a decline in Asian and European stocks prompted investors to pare holdings of higher-yielding assets funded in Japan.

The currency gained against the Australian and New Zealand dollars, two favorites for so-called carry trades, after Bank of America Corp. reported worsening credit losses. The euro fell against the dollar after the Federal Association of German Banks took over Duesseldorfer Hypothekenbank AG, a German government and mortgage lender, the Financial Times Deutschland reported.

The yen rose to 163.47 per euro at 8:01 a.m. in London from 164.32 late yesterday in New York, when it fell to a three-month low of 164.86. Japan's currency gained to 103.16 against the dollar from 103.27. The euro declined to $1.5846 euro from $1.5912. It touched $1.5983 on April 17, the highest level since its 1999 debut.

The yen gained as the MSCI Asia Pacific Index of regional equities fell 1 percent on concern widening credit losses will slow global economic growth and make banks reluctant to lend. The Dow Jones Stoxx 50 Index of European shares fell 0.5 percent.

Yen Rises, Bloomberg
4/22/2008 6:24:25 AM