The yen rose for the first time in three days against the euro after government reports showed Japan's recession may be abating, encouraging foreign investors to buy assets in the world’s second-biggest economy.
The Japanese currency ended two days of losses versus the dollar after machine orders rose, exports improved and as speculation intensified that exporters brought back overseas earnings. The pound traded near a five-week high against the euro before a U.K. report tomorrow which economists said will show the housing market improved for a fifth month.
The yen advanced to 138.01 per euro as of 7:45 a.m. in London from 138.41 in New York on Aug. 7, when it declined to 138.72, the lowest level since June 5. The Japanese currency climbed to 97.22 per dollar from 97.57, after falling to 97.79 on Aug. 7, the weakest level since June 16.
The dollar traded at $1.4196 per euro from $1.4183 in New York on Aug. 7, when it rose to $1.4155, the highest level since July 31. Europe's single currency traded at 85.12 pence from 84.98 pence. It slipped to 84.56 pence on Aug. 6, the weakest level since June 30.
Exchange-rate movements may be exaggerated by Japan's Obon holidays this week, when Japanese often take week-long vacations to honor ancestors.
