Yen weakens amid Nikkei equity carnage

MARKET NEWS

TOKYO -- The Japanese yen hit a two-week low against the US dollar late last week, as falling Japanese stock markets raised fears about Japan’s financial system and US funds sold Japanese assets.

The Nikkei 225 Index fell by over 3% on Friday (July 26), well below the 10,000 points level. The yen followed suit, moving below 118 yen per dollar in New York trading on Friday.

Many Japanese banks have large investments in Nikkei shares, and as their value decreases, so do the assets of the banks,