Yen Falls to One-Month Low Versus Euro

The yen fell to a one-month low against the euro as a rally in Asian stocks encouraged investors to add to holdings of higher-yielding assets funded in the Japanese currency.

The yen declined against the Australian and the New Zealand dollars, two favorites of so-called carry trades, as the MSCI Asia Pacific Index of regional shares snapped a five-day losing streak. The dollar traded near a one-month low against the euro before U.S. reports today that economists forecast will show falling house prices are eroding confidence among consumers.

The yen fell to 163.88 per euro, the lowest since April 28, before trading at 163.57 at 6:56 a.m. in New York, from 163.10 yesterday. It declined to 103.78 against the dollar, from 103.43. The euro was at $1.5758, from $1.5770 yesterday, after rising to $1.5818, the highest level since April 24.

Japan's currency slid 0.6 percent to 100.02 per Australian dollar and 1 percent to 81.95 against New Zealand's currency as the MSCI Index of regional shares rose 1 percent, ending a retreat that left share prices at the cheapest relative to earnings in five weeks.

Yen Falls to One-Month Low Versus Euro, Bloomberg
5/27/2008 6:48:21 AM