Yen climbs as carry-trades unwind
The yen continued to climb against both the euro and dollar in foreign exchange trading on Thursday as carry-trades unwound on the back of positive Japanese economic figures.
The yen was worth 156.96 in New York late trading while the dollar traded at ¥119.43 and the pound $1.9539.
The dollar was also hit by a mixed series of US economic figures, with the Treasury International Capital report showing that currency flows into the country are slowing.
US consumers are becoming increasingly confident in overseas investment funds at the same time as many foreign nationals are moving away from US securities, it said.
Long-maturity US security purchases fell 82 per cent in December, down to $15.6 billion from $84.9 billion previously.
"Anything that shows a diminished appetite for US assets is going to be injurious to the dollar," John McCarthy of ING Capital Markets told the International Herald Tribune.