Yen, Dollar Fall Against Krone, Aussie as OECD Boosts Forecast

By Bo Nielsen

June 24 (Bloomberg) -- The yen and the dollar weakened against higher-yielding currencies after the Organization for Economic Cooperation and Development forecast the world’s leading industrialized nations will expand next year.

The Japanese and U.S. currencies dropped versus the Norwegian krone, the Australian dollar and the pound as the Paris-based OECD said the economy of its 30 member nations will grow 0.7 percent in 2010 after shrinking 4.1 percent this year. The projections compare with March forecasts for contractions of 0.1 percent and 4.3 percent.

“Risk appetite is topping out but it’s going to be a gradual process,” said Geoffrey Yu, a strategist in London at UBS AG, the world’s second-biggest currency trader.

The yen weakened 0.8 percent to 14.8093 per kroner as of 11:11 a.m. in London. The Australian dollar gained 0.8 percent to 76.19 yen, and the pound jumped 0.7 percent to 157.71 yen.

The U.S. currency bought 6.4270 kroner, from 6.4792 yesterday. The Aussie strengthened to 79.91 U.S. cents, from 79.39 cents, with the pound advancing to $1.6560, from $1.6455.

Benchmark interest rates in Japan are 0.1 percent and between zero and 0.25 percent in the U.S. That compares with 1.25 percent in Norway, 3 percent in Australia and 0.5 percent in the U.K.

To contact the reporters on this story: Bo Nielsen in Copenhagen at bnielsen4@bloomberg.net