The yen gained versus all of its major counterparts after the latest earthquake to strike Japan discouraged demand for higher-yielding assets.
Japan’s currency appreciated from an 11-month low versus the euro and rose for a third day against the dollar three weeks after the Group of Seven nations sold the currency as it touched a record high versus the greenback. The dollar rose against most of its 16 major peers tracked by Bloomberg after U.S. lawmakers averted a government shutdown by agreeing to budget cuts.
“We’ve had a nice run in risk trades in the past couple of weeks, and along with it the yen has moved significantly weaker after the G-7 intervention,” said Carl Forcheski, a director on the corporate currency sales desk at Societe Generale SA in New York. “A lot of market participants see the trend and like the trend but are finding it difficult to buy further from these levels, and the aftershock was enough to give the market a little bit of pause.”
The yen gained 0.4 percent to 122.26 against the euro at 9:51 a.m. in New York, from 122.76 on April 8, reversing an earlier slide to 123.33, the weakest level since May 5. Japan’s currency appreciated 0.2 percent to 84.59 per dollar, from 84.76. The euro decreased 0.2 percent to $1.4453, from $1.4483, after reaching $1.4489 on April 8, the strongest level since January 2010.
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