Yen declines to two-week low on recovery signs

The yen fell to the lowest level in almost two weeks against the euro as signs the global recovery are strengthening and speculation that Greece won't need a bailout boosted demand for higher-yielding investments.

The yen weakened to 124.26 per euro in Tokyo from 124.12 in New York on Tuesday, after falling to 124.49, the lowest level since February 4.

Japan's currency yesterday dropped versus 15 of its 16 major counterparts before reports that economists said will show United Kingdom jobless claims declined for a third month and the rebound in US manufacturing accelerated.

The euro traded near a one-week high versus the dollar after Greek Finance Minister George Papaconstantinou said in Brussels, "there's no actual need for a bailout".

Asian currencies strengthened as a stock rally bolstered investor appetite for emerging-market assets.

The euro traded at $1.3754 from $1.3770 after climbing to $1.3782, the highest since February 11. Japan's currency was at 90.35 per dollar from 90.14. Europe's currency has fallen nine per cent against the dollar from a high of $1.5144 in November on concern sovereign debt problems will hamper the region's recovery.

"Positive data would probably suggest a risk-on scenario," said Yuji Saito, director of the foreign-exchange department at Credit Agricole CIB in Tokyo.

 

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