Posted at 11:17 a.m., Friday, November 9, 2007
Yen rises against dollar, forecast for more gains
Advertiser Staff and News Services
The yen rose to the highest level since May 2006 against the dollar as concern over credit-market losses and tumbling stocks led investors to shun higher-yielding assets bought with loans in Japan, Bloomberg News reported.The yen headed for the biggest weekly advance since March after speculation Barclays Plc, Britain's third-biggest lender, would write down assets. The yen may rise to 100 per dollar by the end of 2008, Lehman Brothers Holdings Inc. and Deutsche Bank AG said.
``Risk aversion is coming back to the markets,'' Adam Boyton, a senior currency strategist in New York at Deutsche Bank AG, the world's biggest currency trading bank, told Bloomberg.
``The writedowns from financial companies tell you that subprime is a significant issue and dealing with its hangover is going to take some time. The yen will continue to benefit.''
The yen advanced 1.4 percent to 111 per dollar at 2:32 p.m. in New York and earlier touched 110.51. The Japanese yen rose 1.5 percent to 162.81 per euro.
