5 February 2007, 12:17   The yen rose against the euro and the dollar on Monday

The yen rose against the euro and the dollar on Monday as investors covered short yen positions ahead of a meeting of Group of Seven finance officials later in the week. The G7 meeting in Essen, Germany, on Feb. 9-10 is in the spotlight because European officials have been pushing for discussion of the yen's weakness, although their Japanese and U.S. counterparts have been playing down the issue. "Speculation leading up to the G7 is going to whip the yen around this week," said Hideaki Furumaya, a forex manager at Trust and Custody Services Bank. In addition, traders said euro sentiment continued to slide after a report by Market News International late last week that "well-informed sources" had said the European Central Bank could refrain from raising rates for a while after its next rise. The dollar was down about 0.2 percent at 120.80 yen hovering near the day's low around 120.70 yen. The U.S. currency pulled back from 121.37 yen touched on Friday, when data showed that the U.S. economy added 111,000 jobs in January. The number had fallen short of expectations, but an upward revision to previous months indicated the economy was on a solid footing. This supported the view that the Federal Reserve may not lower rates soon, helping keep the dollar within range of a four-year high against the yen hit a week ago.

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