The yen rose to a one-month high against the euro as Asian stocks slumped on concern the global recession will be prolonged, spurring demand for the relative safety of Japan's currency. The yen strengthened against all 16 most-traded currencies before a U.S. report tomorrow that economists say will show durable-goods orders declined in May. Japan's currency also gained for a third day against the dollar after the World Bank yesterday forecast the global recession will be deeper than it earlier projected.
The yen advanced to 131.84 per euro as of 7:31 a.m. in London from 132.93 yesterday in New York. It earlier reached 131.43, the strongest level since May 22. The yen climbed to 95.15 per dollar from 95.87, after rising to 94.99, the highest since June 1. The dollar traded at $1.3864 per euro from $1.3865.
Canada's dollar fell to the lowest level in more than a month against its U.S. counterpart on speculation recovery from the first global recession since World War II will take longer than some forecast. The Canadian currency, known as the loonie, dropped 1.6 percent to C$1.1537 per U.S. dollar at 4:35 p.m. in Toronto, from C$1.1352 on June 19. It touched C$1.1556, the weakest level since May 20, when it reached C$1.1584. One Canadian dollar buys 86.68 U.S. cents.
Gold dropped for a second day in Asia as some investors sold the metal for cash after global equities slumped on concern the global economic recovery will falter. Gold for immediate delivery was down 0.7 percent at $916.60 an ounce at 1:30 p.m. in Singapore after earlier touching $913.24, the lowest since May 12.
