Yen weakens Versus Euro on prospects of Central Bank interest rates

April 25, 2011, 6: 43 pm EDT by Keith Jenkins and Masaki Kondo

April 25 (Bloomberg) - the yen fell versus its major counterparts on the speculation, the Bank of the Japan signal this week it will maintain a monetary stimulus while the policy is tightened elsewhere.

The euro climbed against the yen for a second before day of data this week that can display arrested in the currency bloc accelerated industrial growth in developing the case for the European Central Bank to increase interest rates. Malaysian Ringgit strengthened below 3 per dollar for the first time in over 13 years on the speculation, the Central Asian Bank will its interest rate month next to help damp inflation. The motto of the United States weakened against most of its major peers. "" The Japan and the United States are the countries that can move towards a monetary tightening, the yen and the dollar will be weak, "said Daisaku Ueno, President of Gaitame.com Research Institute Ltd., in Tokyo, a unit of the largest enterprise of margin money of Japan. "The yen will continue to depreciate until the global economy is recovering gradually."Currency of damped Japan 0.3 per cent to 119.64 for one euro as of 6 pm 27 in New York from 119.24 weakened last week to the 81.98 per dollar of 81.88. The euro traded at $1.4595 to $1.4561 after touching $1.4649 on 21 April, the highest level since December 2009.Financial in Australia, New Zealand, Hong Kong and London markets are closed for a holiday today.Industrial Bank OrdersThe of Japan will hold interest rates of reference to a range of between zero and 0.1% at its meeting of 28 April, according to 13 economists surveyed by Bloomberg. The Central Bank may cut its forecast for growth in fiscal year 2011 to 0.8 1.6% following an earthquake record on March 11, the Nikkei newspaper reported.The euro has gained 3.4% this year, the second best performer after the Crown of Sweden among the 10 most widely traded currencies followed by Bloomberg Correlation-Weighted currency Indexes.ECB President Jean-Claude Trichet, said last week that the stability of prices remains the first mission of the Central Bank and this credibility maintain inflation is critical. Member of the Executive Board of ECB Jose Manuel Gonzalez-Paramo speaks tomorrow followed by Member of the Board of the Bank Central Athanasios Orphanides on April 27. the ECB, which aims to keep inflation below 2% this month raised interest rates by a quarter to 1.25% percentage point. He left the door open for rates to increase even as a sovereign debt crisis tempers growth in peripheral as countries the Greece, the Portugal, and Ireland.Swedish Crowns "Currencies of nations are hiking rates are attractive," said Hideki AmikuraDeputy Director General of currency in Tokyo at Nomura Trust & Banking Co. a unit of the Japan largest brokerage. "There is a possibility for an appreciation of the euro."In addition to 2 1/2 years now after the Riksbank increased interest rates, last week, the Swedish Crown rose to its strongest against the dollar. The Crown is passed to 6.0701, a level not seen since August 2008, before the Exchange on the orders of 6.0796.Industrial, in the euro area rose 1.5% in February from the previous month when they increased a revised 1.2 %, according to economists surveyed by Bloomberg before that report on April 27.The dollar has reduced the previous losses against the euro. Stochastic Oscillator of 14 days of the European currency against the rose to 82.3 on 22 April, above the threshold of 80 to some traders think the price of the greenback increased too quickly and is poised to reverse the course.'Oversold' dollar "the dollar is probably oversold, given its recent economic crisis," said Lee Wai Tuck, a strategist of currency prediction Singapore Pte. "This is probably contributing to some back purchases of the greenback in the middle of the markets thinned vacation."Futures traders cut their bet that the euro will rise against the dollar, according to data from the Commodity Futures Trading Commission. The difference in the number of updates in hedge funds and other large speculators on a gain in the euro than on a drop - soi-saying net long - been 62,195 19 April, compared to 64,985 a week earlier.The ringgit led gains among Asian currencies. A Government report showed inflation this month in Southeast Asia in the third - most large economy accelerated the fastest pace in 23 months. "We could expect the ringgit to strengthen to counter inflation, because there is always a small probability of an increase in the rate in may,"said Saktiandi Supaat, head of research in foreign Singapore to Malayan Banking Bhd."It is also helped by the weakness of the dollar. "Consumer price of Malaysia increased by 3% in March from the previous year, the most since April 2009, the Department of statistics, said on April 20. Bank Negara kept its rate on the day the day at 2.75% since July, after raising three times earlier in affected stipulated ringgit 2.9910 against the dollar, the level harder since October 1997, before trade 3.0045 2.9920 last week.

-With the help of David Yong at Singapore. Editors: Rocky Swift, Matthew Brown.

To contact the reporters on this story: Keith Jenkins at London, kjenkins3@bloomberg.net. Masaki Kondo in Singapore to the mkondo3@bloomberg.net

To contact the editor responsible for this story: Daniel Cuddies to dtilles@bloomberg.net

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