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Yen retreats from 4-month high

Yen retreats from 4-month high

The yen is retreating from a four-month high after the Bank of Japan poured a record $184 billion into financial markets to support the Japanese economy in the wake of the calamitous earthquake and tsunami.
That kind of support is meant to lower interest rates, which tends to make a currency less attractive to investors.
In morning trading in New York, the dollar is trading at 81.86 Japanese yen, down from 81.88 yen late Friday. In overnight trading, the dollar had bottomed at 80.64 yen, its weakest level since early November, just above the post-war low of 79.75 yen struck in 1995.
Japan's crisis has bolstered the yen because investors expect the Japanese to buy back their home currency in order to fund the country's reconstruction, increasing demand for the yen.