The Yen depreciated against the U.S. Dollar to as low as 94.05, the weakest level since Dec. 8, from 92.03. Analysts cited speculation that Japanese investors are renewing their foreign investments this year, which should also hurt the Yen further. The Japanese currency declined 1% versus the U.S. Dollar while it has slumped 4% total so far this year. The JPY was the largest beneficiary in 2008, climbing at least 16% against all major currencies.
The Japanese currency declined for a sixth straight day against the USD, the longest run of gains in two years, after General Motors Corp. said it has enough government funding to cover the worst-case scenario and may not need additional loans. The U.S. Treasury has pledged as much as $13.4 billion in aid to help GM pay its bills and $6 billion to prop up lender GMAC LLC, which GM relies on for auto loans and dealer support. Apparently investors have turned more bearish on the prospects for Japan's recession-hit economy, and deteriorating Japanese consumption, analysts say.