Yen weakens slightly; investors not heeding intervention signal

London

THE yen weakened for a third day running on Thursday but was still close to a recent 18-month peak, with investors unconvinced by a signal from Japan's prime minister that it could step in to weaken the currency.

Most moves in the forex market were muted as investors waited for Friday's closely watched key US payrolls report for direction and clues on when US interest rates are likely to increase.

The Swiss franc hit an eight-week low against the euro as investors regained a small amount of risk appetite, while the yen, also traditionally used as a safe haven, fell 0.2 per cent against the dollar. "FX markets are in a slight risk-on bias . . . but I wouldn't read too much into it because equity markets have done basically nothing. . ." said currency strategist Stephen Gallo at BMO Capital Markets in London. The yen has gained more than 15 per cent against the dollar over the past six months, amid market turbulence and …