Yen Firmer As Chinese Market Slides

Yen Firmer As Chinese Market Slides

S&P MARKETSCOPE (06/25/2007 8:15am ): Dollar down at 123.42 yen, euro down at 166.05 yen after Chinese stocks fell 3.68%, prompting investors to reduce emerging-market purchases funded by money borrowed in Japan... China's central bank governor Zhou Xiaochuan said the country's shares may be overvalued and hinted at further interest-rate increases... Tokyo and Hong Kong stocks also fell in reaction to Shanghai's slide... separately, the Bank for International Settlements warned investors about their "too firm conviction" on so-called carry trades... euro off at $1.3455 although German July GfK consumer confidence rose to better than expected 8.4 level from 7.4 in June, which revised from 7.3... sterling flat at $1.9985... the dollar index is up 0.03 to 82.34.

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