Japanese yen pares gains against most majors, Friday, September 26, 2008 12:12:14 PM

The Japanese currency pared early gains against most of its major counterparts during New York mid-day trading on Friday.

The Ministry of Internal Affairs and Communications said that core inflation in Japan increased 2.4 percent on year in August, in line with analyst expectations. It also held steady from the July figure, equaling an 11-year high.

Overall nationwide CPI was up an annual 2.1 percent, matching forecasts after a 2.3 percent gain on year in the previous month. Overall inflation gained 0.3 percent on month.

After hitting an 8-day high of 105.05 by about 8:35 am ET, the yen reversed its direction against the US dollar in New York mid-day deals today. Currently, the pair is worth 106.08.

The U.S. Commerce Department revealed that Gross Domestic Product grew at a rate of 2.8 percent in the April-to-June period. This was slower than the 3.3 percent pace that was reported last month.

The Japanese currency trended down against the euro and the British pound in New York morning deals from previous session`s uptrend. As of now, the yen is trading at 154.77 against the euro and 195.14 versus the pound, compared to early 1-week highs of 153.50 and 193.22, respectively.

Against the Swiss franc, the yen weakened to 97.76 by about 10:00 am ET from last session`s 4-day high of 96.63 today. Presently, the franc-yen pair is trading near 97.40.