Yen, Dollar Weaken on Signs of Economic Recovery, Stock Gains

The yen weakened for a third day against the euro and the dollar also fell as signs the global economy is recovering boosted demand for riskier assets.

The yen slid against all of its 16 major counterparts before reports today that economists said will show European retail sales fell at a slower pace and U.S. service industries expanded. Australia’s dollar approached a one-week high versus the dollar after a government report showed retail sales rose in October after unexpectedly declining the previous month.

“With the global economy recovering, risk trades will weigh on the funding currencies” such as the yen and the dollar, said Soichiro Mori, manager of foreign-exchange promotion at FXOnline Japan Co., a margin-trading company. “Higher-yielding currencies will benefit from the liquidity-driven play.” (more)