UPDTAES ON JULY 30 2008

JULY 30 WEDNESDAY

Yen Trades Near 1-Month Low as Japan Investors Seek High Yield .

The yen traded near a one-month low against the dollar

on speculation Japanese investors will invest their summer

bonuses in overseas assets offering higher yields.

Japan's currency traded at 108.05 per dollar at 6:45 a.m. in

London from 108.11 in New York yesterday, when it fell

to 108.29, the weakest level since June 25. The yen was also

at 168.45 per euro from 168.53. The dollar traded at

$1.5587 per euro from $1.5588 yesterday, when it climbed

to $1.5554, the strongest level since June 25.

The Bank of Japan's target lending rate of 0.5 percent is the

lowest among industrialized economies, making assets

outside of the country more attractive to domestic

investors.

The dollar may rise for a second day against the euro after

crude oil dropped to a 12-week low of $120.42 a barrel

yesterday, helping drive U.S. stocks higher. The euro-dollar

exchange rate and oil had a correlation of 0.9 in the past

year, according to Bloomberg calculations based on the

correlation of their value changes. A reading of 1 would

mean they moved in lockstep.

U.S. companies cut 60,000 jobs in July, following a reduction of

79,000 in June, according to a Bloomberg News survey of

economists before a report from ADP Employer Services

at 8:15 a.m. New York time. Non-farm payrolls, due on

Aug. 1 from the Labor Department, dropped by 75,000

following a decline of 62,000 in June, according to a

separate survey.