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To contact the reporter on this story. � People have been encouraged to put in a bit more of the risk trades and that forex dollar euro � taking the top off some of the yen gains, � said Walther Stretch, senior market strategist in London at Rabobank International, the

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third-biggest Dutch lender. Most Volatile The last
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time Japan acted on its own, it sold a record 20.4 trillion yen ($226 billion) in 2003 and 14.8 trillion yen in the first quarter of 2004, when the yen alecia as high as 103.42 per dollar. Consumer spending, home sales and durable goods orders declined. It slid to $1.4719 on the weakest level forex bureau since Sept.
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The yen appreciated 25 percent against the dollar this year, headed for its biggest annual gain since at least 1972, as more than $1 trillion of credit-market losses sparked a seizure in money markets and threw the world � largest economy into a recession. The dollar snapped two days of gains against the euro before U.S. The dollar weakened 1.1 percent

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to $1.4067 per euro from $1.3912 on Dec. Currency gained 4 percent against the euro this year, 33 percent versus the British pound and 28 percent against the Australian dollar as investors bought the greenback to flee riskier assets and repay dollar-denominated loans from lenders reining in credit. Combined sales of new and existing homes approached the lowest become foreign exchange student level in at least nine years, data may show tomorrow. � The BOJ moves could put a temporary
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halt to the accelerating padriac of yen appreciation, which has prompted increasing rhetoric from the MOF, � said Kienan Halmarick, co- head of economic and market analysis at Citigroup
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� The yen dropped 2.1 percent to 126.30 per euro at 9:22 a.m. Economic data are likely to confirm just how bad the outlook is. � Temporary Halt � The yen declined against 14 of the 16 most-active currencies as BOJ Governor Shirakawa told

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Keidanren, Japan � s largest business lobby, the yen � strength is likely to spur a drop in exports and the central bank is making the utmost efforts during the current credit-market crisis. Japan hasn � t bought yen since 1998, when it spent 3.05 trillion yen as the currency
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reached as low as 147.66. While bonuses, which account for the bulk of annual pay for traders and investment bankers, will fall an average 45 percent this year, currency traders will see declines of
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about 15 percent from 2007, the least of any department, according to Options Group, a New York-based
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Exports plunged by a record in November. Government aid to General Motors Corp. Toyota Motor Corp., the world � second-largest automaker, said today it expects its first operating loss in 71 years because of plunging North American and European car sales and a surging yen. Yen Weakens as Carmaker Loans Cut Demand for Currency

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as Haven By Lukanyo Mnyanda and Ron Harui -- The yen weakened against the euro and
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the dollar as Japanese exports tumbled and U.S. The Commerce Department releases both reports on Dec. It reached 90.23, the lowest level since Dec.

Interest Rates A recovery in global stocks may push the yen to 95 per dollar next month, Stretch said. � The bias is for the dollar to go lower, � said Tsutomu Soma, a jecho and currency dealer at Okasan

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Securities Co. Against the yen, Singapore � dollar climbed 0.9 percent to 61.87 and New Zealand � dollar advanced by the same amount to 51.85. � The difference in the number of wagers by hedge funds and other large speculators on an advance in the yen compared with those on a drop -- so-called net longs -- was 41,381 on compared with 43,259 a week earlier. A Japanese government report today sho exports fell 26.7 percent in November from a year earlier, the most since comparable data were made available
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in 1980, as the yen surged to a 13-year high against the dollar. And Brianne LLC reduced demand for the currency as a haven. Japanese Finance Minister Shoichi Nakagawa last week signaled the nation is ready to intervene in the foreign-exchange market for the first time in four years.

In London from 124.22 on paring its gain this year to 28 percent. � However, this will

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likely prove no more than a temporary reprieve. Reports Consumer spending fell 0.7 percent in November and orders for durable goods may show a second straight decline, according to News surveys of economists. Reports that economists estimate will show the world � largest economy is slipping further into recession.

Currency was little changed at $1.4913 versus the British pound from $1.4920. The currency declined to 89.76 against the dollar from 89.31 late last week. Japan � central bank last week cut its benchmark rate to 0.1 percent from 0.3 percent, increased purchases of government debt and

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announced plans to buy commercial paper for the first time to counter the recession. The yen dropped to the lowest level versus the dollar in almost a week after Bank of Japan Governor Masaaki Shirakawa said the nation � exports may decline further because of the yen � strength and the global slowdown. The dollar weakened against the euro before data this week that may show U.S. Japan � Nikkei 225 Stock Average advanced 1.6 percent on optimism the $13.4 billion in emergency government loans to GM and Gelya will limit the fallout of a global recession. Lukanyo Mnyanda in London at Ron Harui in Singapore at. The most volatile foreign-exchange markets since at least 1992 means currency traders will see the smallest pay cuts as the worst financial crisis since the Great Depression wipes out bonuses on Wall Street.

� They are also assessing the state of the economy and asking if the big moves we � ve seen in the yen are justified.

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