The yen strengthened to a six-week high against the euro and the dollar as Asian stocks fell and Japanese machinery orders unexpectedly declined, adding to signs the global recession is far from over.
The yen rose against all of the 16 major currencies for a second day on speculation the worldwide slump will sap corporate earnings, increasing demand for safer assets. The dollar fell for a third day against the yen on concern the greenback's role as the world's reserve currency will be questioned at a Group of Eight meeting starting today.
The yen rose to 130.97 per euro as of 7:48 a.m. in London, from 132.13 yesterday in New York. It earlier climbed to 130.42, the strongest since May 21. Japan’s currency advanced to 94.25 per dollar, after reaching 94.08, the highest since May 22. The euro fell to $1.3893 from $1.3924. The pound weakened 0.3 percent to $1.6084.
Crude oil fell, poised for the longest losing streak since December, as equities slumped and an industry report showed an increase in U.S. fuel inventories. Crude oil for August delivery fell as much as $1.06, or 1.7 percent, to $61.87 a barrel on the New York Mercantile Exchange, the lowest intraday price since May 26. Oil was at $62.19 a barrel at 2:51 p.m. Singapore time.
