Nov. 15 (Bloomberg) -- The yen declined against 14 of the 16 most-actively traded currencies on speculation Japanese mutual funds are buying overseas assets in search of higher yields.
The yen fell for a third day versus the euro as three mutual funds in Japan focused on foreign markets with the equivalent of $4.92 billion in assets, according to data compiled by Bloomberg. The currency weakened 4 percent versus the euro this year and 6.4 percent against Australia's dollar as Japan's low interest rates prompted investors to buy securities that offer higher returns.
``Investment trust funds are being set up tomorrow, so there seems to be some selling of the yen,'' said Nobuaki Tani, a client manager at Resona Bank Ltd., a unit of Japan's fourth- largest publicly traded lender. ``Higher-yielding currencies such as the Australian dollar and the euro are attractive.''
Japan's currency dropped to 163.36 per euro as of 11:30 a.m. in Tokyo, from 163.07 in New York. It was at 111.38 against the dollar compared with 111.32 yesterday. The yen may weaken to 164 per euro and 112 versus the dollar today, Tani forecast.
Against the Australian dollar, the yen fell to 100.27 from 99.65. Japan's currency fell to 85.13 against the New Zealand dollar from 84.92 and declined against the pound to 229.39 from 228.48.
Japanese investors bought 982.8 billion yen ($8.8 billion) in offshore assets in the week to Nov. 10 compared with 950.9 billion the previous week, the Ministry of Finance said today.
Go to Bloomberg for more details.
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