Japan's currency extended gains versus the dollar and the euro after the Bank of Japan raised its view of the nation’s economy for a second month and left the overnight lending rate unchanged at 0.1 percent. The yen also rose against higher-yielding currencies and advanced the most in 12 weeks versus the dollar as stocks declined and the Bank of Japan said the nation’s deepest recession since World War II is easing.
The yen climbed to 132.97 per euro as of 7:02 a.m. in London from 134.99 yesterday in New York. It earlier rose to 132.74, the strongest level since May 28. The yen gained 1.8 percent to 96.16 per dollar, the biggest gain since March 19.
The euro rose to $1.3828 from $1.3803, after earlier weakening to $1.3749, the lowest level since May 21. Europe’s single currency advanced to 84.83 British pence from 84.57 pence.
The ZEW Center for European Economic Research will say its index of investor and analyst expectations rose to 35 from 31.1 in May, according to the median of forecast in a Bloomberg survey. That would be the highest reading since June 2006. ZEW releases the report, which aims to predict economic Developments six months ahead, at 11 a.m. in Mannheim today.
