By Stanley White
Dec. 10 (Bloomberg) -- The yen fell against the euro after regional stocks rose, encouraging investors to purchase higher- yielding assets funded with Japan’s currency.
The yen also declined against the dollar on speculation Japanese importers are buying foreign currencies to pay their bills before the year ends.
“Yen sellers have the advantage,” said Tadahiko Nashimoto, director of foreign exchange at Barclays Bank Plc in Tokyo. “There’s some yen selling demand as companies have to settle their accounts this month. Stocks are also up.”
The yen fell to 119.59 per euro as of 10:06 a.m. in Tokyo from 119.07 late yesterday in New York. Against the dollar, it declined to 92.54 from 92.13 yesterday. It rose to 91.60 on Dec. 5, the highest since Oct. 24. The euro was little changed at $1.2929. The yen may fall to 93 per dollar and 120 versus the euro today, Nashimoto said.
The MSCI Asia-Pacific index of regional shares rose 0.06 percent for the fourth day of gains. In carry trades investors get funds in a country with low borrowing costs and buy assets where returns are higher. Japan’s 0.3 percent target rate is the lowest among developed nations.
Many Japanese companies close their accounts on the fifth, 10th, 15th, 20th, 25th and the last business day of every month. These days are known as “Gotobi” in Japanese.
To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net
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