Despite some positive signals recently, optimism over global recovery is losing steam as investors fear it could be unsustainable and weak at first. This view, in combination with the G8 summit taking place at the moment is driving demand for safe havens with the yen edging up on the euro and US dollar.

The yen has climbed to 128.84 from 130.36 yesterday and has gained 4% this week, on the news that exit from recession may be delayed. The euro has also come under pressure from news that the IMF is to increase funding to Eastern European nations.

The euro exchange rate is currently 128.68 against the yen and 1.51 against the Swiss franc.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.