Yen at 7-year low after Moody's cut

London

THE yen fell to a seven-year low against the US dollar in volatile trade on Monday after global rating agency Moody's cut Japan's sovereign rating.

The US dollar rose as high as 119.15 yen on the EBS trading platform, its highest since July 2007, immediately after the rating decision was announced. It ran into profit taking and was last trading at 118.35 yen, down 0.2 per cent on the day. Japanese stock futures - which tend to rise when the yen drops against the US dollar and vice versa - eased after the downgrade, buoying the yen, dealers said.