Yen Falls as Signs of U.S., Chinese Recovery Pare Safety Demand

Yen Falls as Signs of U.S., Chinese Recovery Pare Safety Demand

May 1 (Bloomberg) -- The yen fell to a two-week low against the euro while the dollar dropped as signs of recovery in manufacturing in the U.S. and China sapped demand for the currencies as a refuge.

Australia’s dollar rose for a ninth week against the greenback as the rand gained today versus all of the other major currencies on speculation investors will buy higher-yielding assets. The dollar advanced against the yen as the yield premium of 10-year Treasuries over comparable Japanese debt increased this week to the highest level since November.

“There’s renewed optimism about the global economy,” said Samarjit Shankar, director of strategy for the global markets group in Boston at Bank of New York Mellon, the world’s largest custodial bank, with about $20 trillion in assets under administration. “Money is coming from the sidelines. For now, risk appetite is weighing on the yen, and the dollar remains on its back foot.”

The euro rose 1.1 percent to 131.98 yen at 10:05 a.m. in New York, from 130.52 yesterday, and reached 132.35, the highest level since April 14. The yen declined 0.9 percent to 99.47 against the dollar, from 98.63. It touched 99.58, the weakest level since April 17. The euro appreciated 0.3 percent to $1.3273 from $1.3230.