Yen Strengthens as Traders Reduce Bets Before BOJ's Interest-Rate Decision

(Bloomberg) -- The yen gained against the dollar and
the euro as traders reduced risk before a two-day Bank of Japan
interest-rate meeting ends today.

The Japanese currency benefited from speculation policy
makers will signal the central bank may raise borrowing costs as
soon as next month after leaving them on hold today at 0.5
percent. A survey of 34 economists showed 21 expect the BOJ to
raise the rate to 0.75 percent in August.


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Yen Gains Against Higher-Yielding Currencies Before BOJ's Policy Meeting

(Bloomberg) -- The yen rebounded from a record low
against the euro on speculation the Bank of Japan will signal at
a meeting this week it will raise interest rates in August.

The currency also rose against the New Zealand dollar, the
Australian dollar and the British pound, which are favored for
their higher yields. An increase in Japan's 0.5 percent overnight
lending rate may discourage investors from borrowing yen to
purchase overseas assets, known as carry trades.


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Yen Weakens Versus Euro on Speculation Investors Are Restoring Carry Trade

(Bloomberg) -- The yen fell from a two-week high
against the dollar and weakened versus the euro as investors
resumed their search for higher yields outside Japan through so-
called carry trades.

The dollar fell versus the euro before the Federal Reserve's
interest-rate decision as policy makers are forecast to hold U.S.
borrowing costs at 5.25 percent. Japan's yen fell against all 16
of the most-active currencies as Bank of Japan Governor Toshihiko
Fukui said the central bank aims to adjust interest rates at a
gradual pace.


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Japanese 10-Year Bonds Have Biggest Decline Since March as Stocks Advance

(Bloomberg) -- Japan's government bonds had their
biggest decline since March after a rebound in stocks reduced
speculation investors will abandon riskier assets.

Benchmark 10-year bonds ended a four-day advance as the
lowest yields in almost three weeks deterred buyers. The gain in
stocks outweighed a government report today that showed
industrial production unexpectedly declined. Bank of Japan
Governor Toshihiko Fukui said in Tokyo today that the economy is
expanding faster than its potential growth rate.


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Australian Dollar Climbs to 16-Year High Versus Yen, U.S. Dollar on Yield

(Bloomberg) -- The Australian dollar rose to the
highest in 17 years against the U.S. currency and in almost 16
years against the yen as investors were lured to the nation's
higher-yielding assets.

So-called carry trades have lifted Australia's currency,
known as the Aussie, 23 percent against the yen the past year,
with investors attracted to a benchmark rate 5.75 percentage
points higher than Japan's, the lowest of major economies. The
Bank of Japan left borrowing costs unchanged last week and said
in its May minutes any increases would be ``gradual,'' spurring
bets the key rate won't be boosted this year.


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Japanese Bonds Gain After Report Shows Sentiment of Manufacturers Slumped

(Bloomberg) -- Japan's 10-year bonds rose, extending
a weekly gain, after a government report showed manufacturers
turned pessimistic, reducing speculation the central bank will
increase interest rates as soon as next month.

The report highlighted concern that manufacturers will cut
spending as a housing slowdown damps economic growth in the U.S.,
Japan's largest export market. Ten-year yields have fallen since
reaching their highest in almost a year on June 13, tracking a
drop in U.S. yields. The Bank of Japan will release its Tankan
survey of business sentiment on July 2.


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Yen hits record low vs euro as carry continues

(Reuters) - The yen has fallen across the board since the Bank of Japan last week kept interest rates on hold at 0.5 percent and Governor Toshihiko Fukui said he had no preconceived ideas about a future rate rise, dousing expectations of a hike in July.




Most market players are looking for the BOJ to raise rates to a 12-year high of 0.75 percent in August, but such a move is not expected to dull the allure of carry trades -- borrowing cheaply in low-yielding units to buy higher-yielding currencies.


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Yen hits record low against the euro

(Reuters) - The dollar remained weak against the euro on a slide in benchmark U.S. Treasury yields, which have retreated from five-year highs hit last week on data showing core inflation pressures easing. The yen has fallen across the board since Bank of Japan Governor Toshihiko Fukui said last week he had no preconceived ideas about a future rate rise, dousing expectations of a hike in July.




Most market players are looking for the BOJ to raise rates to a 12-year high in August, but such a move is not expected to dull the allure of carry trades -- borrowing cheap funds in the yen to buy higher-yielding currencies.


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Yen Falls Versus Euro, Australian Dollar, Pound on Demand for Higher Yield

(Bloomberg) -- The yen fell to a record low against
the euro and a 15-year low against the Australian dollar on
speculation investors are borrowing the currency to increase
purchases of higher-yielding assets.

Japan's currency also reached a 19-year low against the New
Zealand dollar, before rebounding as traders said the Reserve
Bank of New Zealand intervened. Bank of Japan Governor Toshihiko
Fukui on June 15 said policy makers need to examine more
economic data before raising interest rates from 0.5 percent,
encouraging investors to add to so-called carry trades.


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GLOBAL MARKETS-US bonds, stocks rally on inflation data

(Reuters) - NEW YORK, June 15 - U.S. Treasury prices rose on
Friday, erasing some of the week's losses, and stocks gained
as tame inflation data eased jitters over potential interest-
rate increases from the Federal Reserve.




The dollar fell against the euro on Friday on tame
inflation data, but reached a 4-1/2-year high against the yen
after the Bank of Japan indicated it was in no hurry to raise
interest rates.


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GLOBAL MARKETS-Stocks, bond yields rise; yen weak after BOJ

(Reuters) - LONDON, June 15 - Global stocks rose on Friday,
absorbing further gains in U.S. and euro zone government bond
yields ahead of U.S. inflation data, while the yen sank after
the Bank of Japan left interest rates on hold.




Energy stocks outperformed after oil spiked above $71 a
barrel overnight and merger and acquisition speculation buoyed
British retailers after a Qatari investment fund increased its
stake in J. Sainsbury , sending its shares up 5 percent.


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Yen Falls Against Euro, New Zealand Dollar After BOJ Leaves Rate Unchanged

(Bloomberg) -- The yen fell to a one-week low
against the euro on speculation Bank of Japan Governor Toshihiko
Fukui will signal plans to raise the overnight lending rate only
gradually after leaving it unchanged today.

The currency also slid against the New Zealand and
Australian dollars after policy makers unanimously decided to
keep the benchmark rate at 0.5 percent for a fifth meeting.
The yen traded near a 4 1/2-year low against the dollar as the
lowest borrowing costs in the industrialized world spur
investors to take out loans in Japan and buy higher-yielding
assets in so-called carry trades.


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Value of Japan Households' Mutual Funds and Bonds Increases to Record High

(Bloomberg) -- The value of mutual funds and bonds
held by Japanese households surged to a record last quarter, as
the lowest interest rates among major economies prompted
individuals to shift money from savings accounts in search of
higher returns.

Mutual funds held by households rose 5.2 percent to 68
trillion yen ($552 billion) in the three months ended March 31,
the Bank of Japan said in its quarterly flow of funds report in
Tokyo today. Bonds owned by households climbed 3.2 percent to 33
trillion yen.


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Yen falls on weak data

(Reuters) - Japan's core machinery orders, a highly volatile figure regarded as a leading gauge of capital spending, rose 2.2 percent in April from the previous month, government data showed on Friday. That was below forecasts for a 4.5 percent increase.




Still, few analysts thought the machinery data would affect monetary policy decisions by the Bank of Japan.


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Japan life insurers cut foreign debt holdings in 06/07

(Reuters) - At the same time, many of the insurers raised their yen bond
holdings in the 12 months to March, earnings statements showed,
even as Japanese government bond yields stayed low despite two
rate rises by the Bank of Japan to 0.5 percent.




Japan's top nine insurers held a total of around 14.5
trillion yen in foreign bonds at the end of
March this year, down a bit from 15.2 trillion yen in March last
year.


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