Yen falls on reduced haven demand as stocks rally

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The yen has fallen 7.2% this year, the worst performer among the 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar has risen 2.6% and the euro gained 3.9%.

The euro-area trade surplus narrowed to 16.1 billion euros from a revised 18.1 billion euros in March, the European Union’s statistics office in Luxembourg said today. The March reading was the most since the common currency was introduced in 1999.

Australia’s dollar extended its first weekly gain against the greenback in six weeks, amid speculation record bets on its decline are overdone.

“Positioning is at record extremes” in the Australian dollar, said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. Trading “should remain largely choppy, but there’s a risk of potential short-covering,” she said. A short position is a bet an asset’s price will fall.

The Aussie rose 0.2% to 95.85 U.S. cents. It gained 1% to 90.98 yen after dropping to 88.94 on June 13, the least since Dec. 31.

www.bloomberg.com

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