The yen weakened beyond 100 per dollar for the first time since Nov. 4 and headed for a weekly decline versus the euro after the Group of 20’s pledge to spur economic growth sapped demand for the currency as a refuge. The yen also fell against the New Zealand dollar for a sixth week after the G-20 nations promised $1 trillion, tripling the International Monetary Fund’s war chest to $750 billion. The pound rose after a report showed the nation’s services industries shrank less than forecast in March. “The market is taking the view that the money made available to the IMF will be sufficient to avoid a more severe development in the emerging markets,” said Henrik Gullberg, a currency strategist at Deutsche Bank AG in London. “The yen could fall to 110 per dollar in a couple of months.” The yen depreciated to 99.74 per dollar as of 7:23 a.m. in New York, from 99.52 yen yesterday, and traded as weak as 100.18 earlier. The euro dropped to $1.3435 from $1.3461, and was little changed at 133.99 yen, gaining 3 percent this week. The dollar headed for a weekly decline against the euro before reports today that will probably show rising U.S. unemployment. The jobless rate climbed in March to 8.5 percent, the highest level in 25 years, according to the median of 79 estimates in a Bloomberg News survey. Employers cut 660,000 workers from staff, the figures may also show, bringing total losses since the recession began to 5 million. The yen declined against all 16 major currencies this week. G-20 leaders offered $250 billion yesterday to revive trade, helping governments weather the turmoil resulting from the surge in unemployment. ‘Turning Point’ “The G-20 summit could mark a turning point in the global financial crisis,” analysts led by Callum Henderson, global head of foreign-exchange research at Standard Chartered Bank in Singapore, wrote in a note today. “This should be supportive for high-yielding currencies such as the Australian dollar in the near term.” The yen slid to 58.18 per New Zealand dollar, bringing its decline in the past five days to 4 percent. The pound gained versus the euro and the dollar after Markit Economics said an index based on a survey of about 700 service companies by the Chartered Institute of Purchasing and Supply rose to a six-month high in March. The U.K. currency advanced to $1.4741 from $1.4725, and to 91.11 pence per euro, from 91.44 pence. ECB Reduction The euro fell after the European Central Bank cut its main refinancing rate by a less-than-forecast 25 basis points to 1.25 percent yesterday, leaving it 75 basis points above the Bank of England’s rate and 100 basis points higher than the top end of the Federal Reserve’s target. Policy makers deferred a decision on what other tools it can use to rescue the ailing economy. The ECB has reduced the benchmark rate by 300 basis points since early October as confidence in the $12 trillion region slid to an all-time low and unemployment rose to the highest level in almost three years. The decision by policy makers to wait until next month before deciding on so-called quantitative easing contrasts with the actions of the Fed, the Bank of England and the Bank of Japan, which began pumping money into their economies last month by buying government and company debt. “Longer term, this is probably euro negative as it confirms that the ECB is behind the curve,” said Jeremy Stretch, a senior currency strategist in London at Rabobank International, the biggest Dutch mortgage lender. The euro’s gains yesterday were a “knee-jerk reaction” and the common currency may drop to $1.23 and 87 pence in six months.

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