The Japanese yen rose against the dollar, but fell versus the euro today as sentiment about the situation in Europe improved after Spain and Greece successfully auctioned their debt, reducing demand for safer currencies.
Greece sold â¬1.625 billion of 13-week bills with yield dropping to 4.64 percent at yesterday’s auction from 4.68 percent on December 20. Greek Prime Minister Lucas Papademos will talk to private bondholders today in an attempt to persuade them forgiving at least half of the country’s debt. There’s concern, though, that other rating agencies may follow Standard & Poor’s in downgrading credit ratings of European countries.
The yen fell yesterday against the US dollar and may yet resume its decline as economic data suggests that economy of the United States is improving. The Empire State Manufacturing Index climbed to 13.5 in January from 9.5 in the preceding month. Analysts estimated before today’s report that industrial production expanded 0.5 percent in December.
USD/JPY dropped from 76.81 to 76.68, while EUR/JPY went from 97.84 up to 98.02 as of 4:08 GMT today.
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