Currencies: Yen retreats on revived risk appetite

By William L. Watts, MarketWatch LONDON (MarketWatch) -- The Japanese yen retreated and traditionally high-yielding currencies rebounded Thursday following a modest revival in risk appetite, analysts said. Asian equity markets posted a mixed performance Thursday. See full story. But European equities rose and U.S. stock index futures pointed higher, partly in response to indications the U.S. Treasury will use provisions in the recently enacted $700 billion bailout bill to re-capitalize troubled banks. See Europe Markets. Read Indications. "Currency markets may have been relatively muted in their immediate response to the coordinated rate cut yesterday but the longer term outlook remains dollar positive, presumably with traders being cheered by details of Paulson's next intervention plan to get U.S. banks lending to one... [read full story]