Yen trades near record high in history

It is expected that financial crisis will force the British government to nationalize banks boosted the haven appeal of Japan's currency. Moreover, other financial currencies changes are to be observed. So sterling erased its decline against the dollar. It is the lowest since Margaret Thatcher was prime minister. Also Reuters reported the Group of Seven may discuss the pound's slump. The dollar dropped to the lowest versus Japan's currency since 1995. It depended on traders that quit buying the greenback to prevent it from sliding below 90 yen after options contracts expired. As Henrik Gullberg, a strategist in London at Deutsche Bank AG, the world's biggest foreign-exchange trader commented this significant selling off of sterling in the past couple of days after the U.K. banking system came into its problems was observed.

However, dollar-yen had been remarkably stable at 90 for some time. The pound traded at 124.75 per yen at 7:10 a.m. in Tokyo, after falling 0.1 percent yesterday and reaching an all-time low of 119.42. The British currency was at 93.28 pence per euro following a 0.7 percent decline. Sterling slid as much as 2.2 percent to $1.3622, the lowest level since September 1985, before trading at $1.3948. The pound erased losses versus the dollar after Reuters reported the G-7 nations may discuss the currency's plunge at its next meeting, according to unnamed person. Sterling lost 5.3 percent versus the dollar and 3.5 percent against the euro in the past three days after the U.K. government's plan for a second bank bailout in three months raised concern the financial crisis is deepening. Shares of Barclays Plc fell for a seventh day in London on concern the bank may take more writedowns and be nationalized.