BS: Yen Approaches Eight-Month High as Stocks Fall After Jobs Data
Aug. 5 (Bloomberg) -- The yen approached an eight-month high against the dollar after more Americans than projected filed for unemployment benefits last week, adding to speculation the U.S. economic recovery is stalling.
The euro erased earlier gains versus the greenback as U.S. stocks fell, eroding the appeal of riskier assets. It earlier rose almost to a three-month high after the European Central Bank held its main interest rate steady and ECB President Jean- Claude Trichet said available third-quarter economic data is better than expected. The shared currency fell against the yen.
“It’s the soft data and the fact that the yen typically gets some safe-haven support when the equity markets are on the downside,” said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. “They’re both pushing in the same direction, in the direction of a stronger yen.”
Japan’s currency gained 0.5 percent to 85.82 per dollar at 11:13 a.m. in New York. It reached 85.33 yen yesterday, the strongest since Nov. 27, when it touched levels last seen in 1995. The euro weakened 0.1 percent to $1.3143 after rallying 0.6 percent earlier. It touched $1.3262 two days ago, the highest level since May 3. It dropped 0.5 percent to 112.80 yen.
The Standard & Poor’s 500 Index sank 0.5 percent while the Stoxx Europe 600 Index swung between losses and gains.
--With assistance from Paul Dobson in London, Klaus Wille in Zurich, Lukanyo Mnyanda in London and Candice Zachariahs and Ron Harui in Singapore. Editors: Greg Storey, Dave Liedtka
To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
