Yen Rises Versus Euro as Drop in Stocks Revives Safety Demand

By Oliver Biggadike

July 28 (Bloomberg) -- The yen advanced versus the euro for the first time in four days as a drop in U.S. stocks discouraged Japanese investors from buying higher-yielding assets overseas.

The dollar rose from the lowest level this year against the currencies of six major U.S. trading partners on increased demand for the safety of the world’s main reserve currency. The Australian dollar advanced to the highest level since September against the greenback after the Reserve Bank said the economy may rebound faster than forecast six months ago.

The euro dropped 0.8 percent to 134.34 yen at 9:27 a.m. in New York, from 135.48 yesterday. The dollar fell 0.5 percent to 94.68 yen, extending its drop this month to 1.8 percent. The euro fetched $1.4187, compared with $1.4232, erasing gains as equities declined. The 16-nation currency traded in July in a range of $1.3833 to today’s high of $1.4304, the strongest level since June 3.

To contact the reporter on this story: Oliver Biggadike in New York at obiggadike@bloomberg.net
Last Updated: July 28, 2009 09:32 EDT