Yen Gives Back Early Gains Against Majors

Wednesday, August 15, 2007 12:52:05 PM - The Japanese yen gave back early gains against the other majors and returned to its overnight levels on Wednesday in New York. The Japanese currency touched multi-month highs against the sterling, euro and dollar in early trading. There was no major economic news out of Japan on Wednesday.

The yen retreated back to its overnight levels against the dollar after rising to a five-month high earlier Wednesday in New York. It got as high as 116.62 at 7:15 a.m. ET. The yen began to decline at around 9:45 a.m. ET and the pair moved at 117.35 three hours later. Investors mulled American CPI data, which was in-line with analyst expectations.

The yen was little changed against the euro on Wednesday in New York. The Japanese currency rose to a resistance level of 157.11 and later fell as low as 158.57. The currencies moved at 157.97 at 12:40 p.m. ET. Overall, the yen remained near a 4 ½ month high against the euro. The euro suffered as traders expressed concerns that the European Central Bank will delay raising interest rates amid signs of a deepening global credit crunch.

The yen was little moved against the pound on Wednesday in New York. The yen rose to as high as 231.74 in early-morning trading and remained up until a slump at around 10 a.m. ET. The pair moved at 233.66 at 12:45 p.m. ET. Trading took place after the minutes of the latest Bank of England policy meeting revealed a 9-0 vote in favor over maintaining the current 5.75 percent interest rate.