The yen rose against the dollar and euro on Monday amid concern over credit-market losses, which pushed investors to cut higher-yielding assets funded by loans in Japan, where interest rates are low. A number of Western currencies fell as trader paid back yen-dominated loans, boosting currency demand. “The dollar's drop against the yen started after a group of six Arab nations said they will review their fixed exchange rates to the U.S. currency,” Bloomberg news reported. The dollar's descent came after a Gulf Cooperation Council meeting, in which members decided to discuss next month a proposal to change their fixed exchange rates. “The care for a reevaluation will be presented to heads of state during a summit in Doha, Qatar on December 3-4,” Bloomberg reported. The dollar has fallen against all 16 major currencies this year, except the Mexican peso, amid a serious U.S. housing crisis and financial losses related to mortgage defaults and tighter lending regulations.
