Yen retreats

Posted by 7Star Thursday, January 14, 2010

The yen fell against the euro and the Australian dollar on Wednesday as investors concluded that China's unexpected raising of banks' reserves requirement ratio would not derail growth, returning cautiously to riskier and higher-yielding currencies. The yen had advanced broadly the previous day after China's central bank surprised world markets by taking a step towards a tighter policy, prompting investors to unwind yen selling positions against currencies such as the commodity-linked Aussie.

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