Shanghai Daily: Business - shanghaidaily.com
THE yen has fallen to a six-week low against the United States dollar and declined versus the euro as concern eased that credit-market losses will deepen, boosting demand for higher-yielding assets funded by loans in Japan. Japan's yen dropped last week against 14 of the 16 most actively traded currencies as US consumer spending showed resilience and short-term borrowing costs fell. The US dollar may extend gains this week against the euro and yen on a report forecast to show durable-goods orders rebounded, suggesting the economy is weathering the worst housing slump in 16 years. "Conditions are falling into place for a weaker yen," Nick Bennenbroek, head of currency strategy in New York at Wells Fargo Bank, told Bloomberg News. "You are seeing some renewed interest in carry trades." The yen weakened against the US dollar for a fourth straight week, falling 0.7 percent to 114.04 per greenback. It reached 114.21 per US dollar on Friday, the weakest level since