Yen falls to new lows against euro, dollar
Afp, Tokyo
The yen fell Tuesday to another low against the euro and a four-and-a-half-year trough against the dollar on expectations that Japanese interest rates will stay well below those in other major economies, dealers said. At one point, the euro hit an all-time high of 166.08 yen, up from 165.90 yen late Monday in New York. In afternoon trade, the single European currency stood at 165.88 yen and at 1.3426 dollars, compared with 1.3414 dollars in New York. The dollar was quoted at 123.56 yen, just off a four-and-a-half year high last seen in December 2002 when it hit 123.66. Earlier in the morning the unit jumped as high as 123.73 yen. The yen remained under pressure as the carry trade -- under which investors borrow yen to take advantage of Japan's super-low interest rates and then head to higher-yielding markets -- showed no signs of abating. The Bank of Japan last week unanimously kept its benchmark rate at 0.5 percent and gave no sign it was in any hurry to raise it.
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