Yen Retreats From One-Month High; Speculation Japanese Individuals Selling

(Bloomberg) -- The yen retreated from a one-month
high against the dollar as Japanese individual investors took
advantage of a 1.4 percent rally yesterday to sell the currency
and buy higher-yielding assets.

The Japanese yen also pared gains against the Canadian
dollar on speculation the Bank of Japan will keep its overnight
lending rate at 0.5 percent tomorrow, encouraging so-called
carry trades. The yen surged yesterday as U.S. stocks slumped,
raising concern global fund managers will pare riskier holdings.


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Yen Trades Near Record Low Versus Euro Before Bank of Japan Tankan Survey

(Bloomberg) -- The yen traded near a record low
versus the euro before a Bank of Japan quarterly Tankan survey,
which may show confidence among Japan's largest manufacturers
stayed close to a two-year high.

The yen declined to a record low against the euro and a 4
1/2-year low versus the dollar last month as reports showed
industrial production fell for a third month and consumer prices
unexpectedly dropped in May. Japan's key interest rate of 0.5
percent is the least of any major economy.


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Japan Stocks May Rise Should Tankan Show Higher Confidence; Banks May Gain

(Bloomberg) -- Japanese stocks may advance, led by
machinery makers such as Komatsu Ltd., should the Bank of Japan's
quarterly survey of business sentiment show improved confidence
and rising capital spending.

The Tankan survey will show a measure of the outlook among
large manufacturers probably rose to 22 in the latest quarter,
from 20 in the first three months of 2007, economists said.
Companies likely plan to boost capital spending by 9 percent in
the coming year, up from 2.9 percent in the previous survey. The
Tankan will be released by the central bank 10 minutes before the
start of trading today.


Read more at Bloomberg Stocks News

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
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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Yen Tumbles Versus Dollar, Euro as Bank of Japan Rate Spurs Carry Trades

(Bloomberg) -- The yen dropped to a record low
against the euro as Japanese interest rates, the lowest
among major economies, encouraged global investors to buy
higher-yielding assets funded by loans in the currency.

Japan's yen also touched the lowest level in more than
four years versus the dollar on the so-called carry trades.
It may extend its losses next week as reports are forecast
to show consumer prices declined and spending weakened,
which may keep the Bank of Japan from lifting borrowing
costs at a faster pace.


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Yen Drops to Near Record Against Euro as BOJ Signals Rates to Stay Low

(Bloomberg) -- The yen fell to near a record low
against the euro and declined versus the dollar after minutes
from the Bank of Japan's meeting in May said central bankers
stuck to a policy of raising interest rates ``gradually.''

The Japanese yen has weakened more than any other currency
against the euro and dollar this year as fund managers increased
investments using borrowed yen in the so-called carry trade. The
extra yield investors earn on German 10-year bonds over similar
maturity Japanese debt widened to near a three-year high.


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Japanese Government Bonds Advance; Yields Near One-Year High Lure Buyers

(Bloomberg) -- Japanese bonds gained after 10-year
yields near the highest in almost a year attracted some investors.

Bonds in Japan rose for a third day after a rally in
Treasuries on June 15 lowered U.S. 10-year yields from near their
highest in five years. U.S. bonds had gained after a report showed
inflation slowed. Bank of Japan Governor Toshihiko Fukui said last
week that he wants to be more convinced that Japan's economic
growth is sustainable before proposing an interest-rate increase.


Read more at Bloomberg Bonds News

Japan's Government Bonds May Rise; Yields Near 1-Year High to Lure Buyers

(Bloomberg) -- Japanese government bonds may advance
on speculation 10-year yields near the highest in almost a year
will entice some investors.

Japan's bonds may rise for a third day after a rally in
Treasuries on June 15 lowered U.S. 10-year yields from near their
highest in five years. U.S. bonds had gained after a report showed
core inflation slowed. Bank of Japan Governor Toshihiko Fukui said
last week that he wants to be more convinced that Japan's economic
growth is sustainable before proposing an interest-rate increase.


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GLOBAL MARKETS-Stocks, bonds gain on tepid U.S. core inflation

(Reuters) - LONDON, June 15 - Global stocks rose on Friday
after tepid U.S. core consumer prices reassured investors that
improving economic growth was not fuelling inflation, while the
yen sank after the Bank of Japan left interest rates on hold.




The U.S. Labor Department reported a steady rise in food and
energy costs pushed overall U.S. consumer prices up 0.7 percent
in May but that with those volatile sectors stripped out, core
inflation edged up just 0.1 percent.


Read more at Reuters.com Economic News

Yen at 4-1/2 year low vs dollar; US CPI eyed

(Reuters) - The yen hit a 4-1/2 year low versus the dollar and a 15-year trough against sterling on Friday after the Bank of Japan left interest rates on hold and gave limited guidance on future tightening.

The dollar was broadly firmer as investors expected U.S. inflation data could boost the view the next move from the Federal Reserve on rates would be up rather than down.


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Dollar firm before Fukui and US CPI, yen slips

(Reuters) - The dollar held near a 4-1/2-year high on Friday, boosted by a climb in U.S. Treasury yields to a five-year high this week, while investors renewed their appetite for risk and sold the low-yielding yen in carry trades.

Traders awaited U.S. consumer price data later in the day to see if Treasury yields rise further, as well as comments by Bank of Japan Governor Toshihiko Fukui after a policy meeting at which the central bank held rates at 0.5 percent as widely expected.


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Japan's Government Bonds Advance as Yields Near One-Year High Lure Buyers

(Bloomberg) -- Japan's government bonds rose, halting
a 10-day slide, on speculation yields near the highest in almost a
year will lure investors.

The benchmark 10-year bond, which yesterday completed the
longest slump in three years, rebounded as charts traders use to
predict price changes signaled its loss was excessive. The yield,
which yesterday reached 1.985 percent, has been at or above 2
percent for only four days since the Bank of Japan ended a five-
year deflation-fighting policy in March 2006.


Read more at Bloomberg Bonds News

Yen Trades at Lowest Since December 2002 Against Dollar on Yield Spread

(Bloomberg) -- The yen traded at the weakest against
the dollar since December 2002 as investors were enticed by the
yield advantage on U.S. Treasuries over Japanese debt.

The Bank of Japan will probably keep its overnight lending
rate at the lowest among major economies at a two-day meeting
beginning today, encouraging investors to send money overseas in
so-called carry trades. The yen has dropped 2.9 percent this year
as traders reduced bets on Federal Reserve rate cuts, causing the
U.S. 10-year yield spread with Japan to widen to a four-year high.


Read more at Bloomberg Currencies News