Yen Heads for Weekly Gain Against Euro as Global Stocks Slump

By David McIntyre and Kosuke Goto

June 8 (Bloomberg) -- The yen headed for the first weekly advance versus the euro in a month as a slump in global stock markets caused investors to sell higher-yielding assets they bought with money borrowed in Japan.

Japan's currency yesterday gained the most in 10 weeks after the Dow Jones Industrial Average had the biggest drop since April 13, pushing traders to pare so-called carry trades. Asian stock markets are likely to follow after American depositary receipts of the region's equities had the biggest decline in three weeks.

``The carry is going to come in for a bit of a pasting as Asian markets will be rattled,'' said Paul Milton, chief dealer at Societe Generale SA in Sydney. ``There will be yen strength.'' read more