UPDATES ON AUG 13 2008

AUG 13 WEDNESDAY

Yen Rises to 12-Week High Against Euro as Carry Trades Pared .

The yen rose to a 12-week high against the euro after a report

showing Japan's economy contracted fanned concern about

a global slump, prompting the nation's investors to cut bets

on higher-yielding assets abroad.

Japan's currency climbed to a two-year high against

New Zealand's dollar and the strongest in four months

versus Australia's, as prices of commodities the two nations

export extended declines. The yen also advanced for a third

day against the U.S. dollar as financial companies led Asian

stocks lower, prompting investors to pare so-called

carry trades.

The dollar may extend its decline versus the yen before a

U.S. government report forecast to show consumers are

spending less. Retail sales dropped 0.1 percent last month,

the first decrease since February, according to the median

forecast of 75 economists surveyed by Bloomberg News.

The Commerce Department is scheduled to release

the report today.

Crude oil last traded at $112.98 a barrel after falling yesterday to

a 14-week low of $112.31. Gold fell for an eighth straight session

and copper dropped to a six-month low in New York trading

yesterday. Gold and crude oil are Australia's third and

fourth most-valuable commodity exports.

U.S. gross domestic product rose at an annual rate of 1.9 percent

in the second quarter, the Commerce Department said

July 31. It fell 0.2 percent in the final three months

of last year.