Midday trade in New York: yen slips, euro surges

The yen slipped on Wednesday after rising four straight days, as risk appetite improved on global stocks gains, and the currency's downtrend was seen intact as long as risk-taking holds up. The negative impact on Japan's economy from the recent earthquake should ensure Japanese monetary policy remains ultra-loose for a prolonged period. That should prompt investors to use the yen as a funding currency in carry trades.
In midday New York trading, the dollar was up 0.1 percent at 83.72 yen after sliding more than 1.2 percent on Tuesday for its biggest one-day fall in four months. The euro was up 0.2 percent as well at 121.28 yen, although it was well below an 11-month high of 123.33 yen hit on Monday. The euro was little changed at $1.4478, having earlier hit $1.4521, a 15-month peak on EBS trading platform.