Thursday, June 24, 2010

Yen, Dollar Strengthen on Speculation Global Economic Recovery Sputtering The yen and the dollar gained against most major counterparts as signs the global economic recovery is faltering fueled demand for the safest currencies.

The Japanese currency remained the top performer among the most-traded currencies even after data showed U.S. jobless claims declined last week. Stocks fell on concern Europe's debt crisis is worsening. Federal Reserve officials said yesterday financial conditions have become "less supportive" of growth and a report showed new home sales fell in May to a record low.

"People are still sort of weary to put on new risk positions, so you're seeing things drift into the safe havens," Brian Kim, a currency strategist at UBS AG in Stamford, Connecticut. "In the times of low risk sentiment, the yen does well, the dollar does well."