March 12 (Bloomberg) -- The yen advanced for a second day against the euro on speculation the deepening global recession will increase demand for the currency as a refuge.
The yen and the greenback both gained versus the Australian and New Zealand dollars after a Japanese report confirmed the world’s second biggest economy shrank last quarter at the fastest pace since 1974, prompting investors to sell higher- yielding assets. The euro may halt a two-day winning streak against the dollar before a German report that economists say will show industrial production dropped for a fifth month, giving the European Central Bank more room to cut interest rates.
“The Japanese report was certainly bad, with some of the data suggesting the economy will keep deteriorating this quarter,” said Yuji Saito, head of the currency group in Tokyo at Societe Generale SA, France’s third-largest bank. “Investors are still risk-averse. This has led to buying of the yen.”
The yen climbed to 123.43 versus the euro as of 6:41 a.m. in London from 124.86 late yesterday in New York. The currency advanced to 96.40 per dollar 97.27. It earlier reached 95.96, the strongest level since Feb. 24.
Japan’s currency gained 2 percent to 62.20 against the Australian dollar and rose 1.3 percent to 49.30 versus the New Zealand dollar. The dollar traded at $1.2803 per euro from $1.2837 late yesterday.
http://www.bloomberg.com/apps/news?pid=20601083&sid=a.OHgzTSGdjU&refer=currency
The yen and the greenback both gained versus the Australian and New Zealand dollars after a Japanese report confirmed the world’s second biggest economy shrank last quarter at the fastest pace since 1974, prompting investors to sell higher- yielding assets. The euro may halt a two-day winning streak against the dollar before a German report that economists say will show industrial production dropped for a fifth month, giving the European Central Bank more room to cut interest rates.
“The Japanese report was certainly bad, with some of the data suggesting the economy will keep deteriorating this quarter,” said Yuji Saito, head of the currency group in Tokyo at Societe Generale SA, France’s third-largest bank. “Investors are still risk-averse. This has led to buying of the yen.”
The yen climbed to 123.43 versus the euro as of 6:41 a.m. in London from 124.86 late yesterday in New York. The currency advanced to 96.40 per dollar 97.27. It earlier reached 95.96, the strongest level since Feb. 24.
Japan’s currency gained 2 percent to 62.20 against the Australian dollar and rose 1.3 percent to 49.30 versus the New Zealand dollar. The dollar traded at $1.2803 per euro from $1.2837 late yesterday.
http://www.bloomberg.com/apps/news?pid=20601083&sid=a.OHgzTSGdjU&refer=currency
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