Yen Sheds Early Gain; Japanese Stocks Decline, Reducing Demand
By Mari Murayama and Kanako Chiba
quote.bloomberg.com
Tokyo, March 12 (Bloomberg) -- The yen fell, snapping an early gain against the dollar, after Japan's Nikkei 225 stock average declined, reducing demand for the currency to buy shares.
The yen weakened to 128.70 per dollar after rising as high as 127.88 from 128.42 yen in New York late trading yesterday. Against the euro, it was little changed at 112.55.
The Nikkei declined for the first time in five sessions. The index was the world's top performer in the past month, helped by expectations global investors will increase holdings of Japanese stocks. Merrill Lynch & Co., Credit Suisse First Boston Ltd., Deutsche Securities Ltd. and Goldman Sachs Group Inc. recommended investors buy Japanese shares.
``The currency market now hinges on Japanese stocks,'' said Masayuki Yamamoto, a research analyst at Bank of America, N.A. ``When stocks fall, it cannot be helped that the yen drops, too.'' |
