Yen Falls on Speculation the BOJ will Keep Rates Unchanged

The yen may weaken against the dollar for a second day on speculation the Bank of Japan will hold interest rates steady, giving investors confidence to borrow in Japan and buy riskier assets elsewhere.

The yen traded at 156.17 per euro at 6:02 a.m. in Tokyo after dropping 1.4 percent yesterday, the most since June 2004. It traded at 115.33 per dollar after falling 0.8 percent yesterday, the most in two months. The Japanese yen may also drop versus the euro and high- yielding currencies such as the New Zealand and Australian dollars as futures on Asian stocks suggested global equities will extend their rally. Japan's benchmark interest rate, the lowest among major economies, compares with 8.25 percent in New Zealand, 6.5 percent in Australia and 5.25 percent in the U.S

Yen Falls on Speculation the BOJ will Keep Rates Unchanged, Bloomberg
8/22/2007 7:40:25 PM