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Yen Declines Against Majors

4/24/2011 10:54 PM ET

In the Asian session on Monday, the yen slipped against other major currencies on the back of a rise in Japanese stocks.

Japanese stocks gained as traders focus on the earnings reports by the Japanese companies this week.

The benchmark Nikkei 225 index is currently trading at 9,710.11 - up 27.90 points or 0.3 percent over its previous close.

Expectations that the Bank of Japan will keep its interest rates at 0.1 percent this week also weakened the yen.

According to a report from the Bank of Japan today, an index measuring the prices for corporate services was at 96.6 in March, down 1.2 percent on year. That was in line with analyst expectations following the downwardly revised 1.1 percent annual contraction in the previous month. On a monthly basis, corporate service prices were up 0.4 percent following the revised 0.2 percent increase in February.

The yen is trading at 82.42 against the US dollar with 83.1 seen as the next downside target level. The dollar-yen pair closed last week's trading at 81.88.

The yen fell to 120.05 against the euro and 135.98 against the pound in Asian deals, compared to last week's close of 119.17 and 135.25, respectively. If the yen weakens further, it may likely target 137.0 against the pound and 120.4 against the euro.

Against the Swiss franc, the yen declined to 93.03 in the Asian session. The next downside target level for the Japanese currency is seen at 93.2. The franc-yen pair was worth 92.42 at last week's close.

The yen also declined against the Australian, New Zealand and Canadian dollars. The yen touched lows of 66.04 against the kiwi, 88.54 against the aussie and 86.48 against the loonie, compared to last week's close of 65.57, 88.02, and 85.91, respectively. If the yen slides further, it may likely target 90.0 against the aussie, 66.5 against the kiwi and 86.8 against the loonie.

There are no major economic reports due in the European session.

From the U.S., the new home sales report for March is expected at 10:00 am ET.

by RTT Staff Writer

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