Yen Tumbles on U.S. Consumer Confidence

The yen declined versus most of the 16 main traded currencies today on a risk fueled session that favored higher-yielding currencies and the U.S. dollar, as favorable reports in the country continued to boost appetite for the greenback.
The yen touched the lowest level in two-months versus the dollar after a confidence report in the U.S. indicated another increase and the most important house price index also improved, making the dollar to revert a losing trend and gain not only versus the yen but also versus several other currencies. Commodity linked currencies like the Australian dollar and the South African rand also advanced versus the yen as traders expect a higher demand for commodities in 2010, as the global economy recovers.
Even if the data produced in the U.S. today frustrated forecasts slightly, it was still positive, helping the dollar to gain, and leaving the yen, the safest refuge in currency markets, more unattractive, as high risk appetite invited traders to bet in more volatile markets, forcing the yen down versus virtually all currencies.
USD/JPY traded at 91.97 as of 17:10 GMT from a previous rate of 91.53 yesterday, at the same time. AUD/JPY traded at 82.44 from 81.23.

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