By Ron Harui
Feb. 3 (Bloomberg) -- The yen fell after the Bank of Japan said it will resume a program of buying corporate shares held by financial institutions, helping revive demand for higher- yielding assets.
Japan’s currency ended a three-day winning streak against the dollar and the euro as the nation’s central bank said in a statement today that it will purchase 1 trillion yen ($11.1 billion) in equities through April 2010. The Australian and New Zealand dollars also climbed versus the yen after Australia’s government said it will spend A$42 billion to help prevent the economy entering a recession.
“The packages being announced by governments worldwide are likely to have a large positive impact on market sentiment,” said Ryohei Muramatsu, manager of Group Treasury Asia in Tokyo at Commerzbank AG, Germany’s second-biggest lender. “The yen may be sold.”
The yen declined 0.4 percent to 89.85 against the dollar as of 11:42 a.m. in Tokyo, from 89.45 late in New York yesterday. The currency dropped 0.6 percent to 115.53 per euro.
Against the yen, Australia’s dollar advanced 1.5 percent to 57.35 from 56.49, and New Zealand’s dollar strengthened 1.6 percent to 45.82 from late in New York yesterday.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net
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