UPDATES ON AUG 20 2008

AUG 20 WEDNESDAY

Yen Falls as China Stock Gains Boost Confidence in Carry Trades .

The yen weakened against the dollar as gains in Chinese

stocks encouraged investors to buy higher- yielding

assets funded in Japan.

The currency declined the most against the New Zealand dollar,

a favorite of so-called carry trades, as China's benchmark stock

index jumped the most since April. The British pound traded

near a two-year low on speculation the Bank of England

will say today in minutes of its last policy meeting that it

expects inflation to ease, adding to the case for a cut in

interest rates.

The yen slid to 109.85 per dollar at 1:43 p.m. in Tokyo from

109.72 in New York yesterday. The currency traded at

162.26 per euro, from 162.13. The U.S. currency was at

$1.4772 per euro from $1.4776 yesterday, when it

touched $1.4631, the strongest level since Feb. 20.

The pound was little changed at $1.8672. It slipped to $1.8512 on

Aug. 15, the lowest level since July 2006.