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Forex trading update: Yen broadly down

Forex trading update: Yen broadly down
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The yen fell broadly in Forex trading today as investors became more optimistic about the trajectory of the world economy.

Meanwhile, the dollar increased in value to its highest level against the yen for nearly six months and the euro extended its gains, reported Reuters.

Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ, said the markets were being boosted by signs that the economic contraction is beginning to fade.

He commented: "That is helping risk assets and prompting the unwinding of safe assets, namely yen and dollar."

The single European currency briefly pared gains after a member of the European Central Bank's executive board suggested that intervention in the markets is sometimes appropriate.

Little reaction was shown, however, to data revealing that sentiment among investors in the eurozone has improved.

In related news, the European Union (EU) has played down a report by the International Monetary Fund suggesting that countries in the central and eastern parts of the continent should join the euro, whether or not they are members of the EU.ADNFCR-1681-ID-19110281-ADNFCR