Euro stumbles while yen benefits from corporate spending

The euro was up 0.4 percent to $1.2271 in relation to the US dollar on Monday, mostly on profit-taking as opposed to higher confidence in the eurozone.

The euro got some support from a show of unity by mainstream politicians after last week’s speculation of a eurozone breakup after France and the Netherlands rejected the European Union constitution.

However, the euro fell against the yen, down 0.5 percent to ¥131.11. That was an eleven-month low. The yen also rose in relation to the US dollar, where it was up 0.8 percent to ¥106.87, and was also higher against sterling, rising 0.4 percent to ¥195.50, a four-month high.

The yen benefited from news out of the ministry of finance that corporate spending in Japan was up 7.4 percent in the first quarter of 2005 after it had risen only 3.4 percent in the previous quarter.

The US dollar also fell 0.4 percent in relation to sterling, to $1.8205, and was down 1.3 percent to $0.7651 against the Australian dollar and down 1.4 percent in relation to the New Zealand dollar.

The Brazilian real, however, fell 1.9 percent to R$2.4683 in relation to the US dollar in sell-offs in reaction to a corruption scandal. The Workers Party there has been the target of accusations that it has been paying off congressmen to support its policies.

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