JPY gains as falling Asian stocks

The yen rose from a five-month low against the dollar and euro as Asian stocks fell, damping demand for higher-yielding securities.

The yen gained versus all of the 16 most-active currencies on speculation credit-market losses will increase at financial institutions, spurring investors to buy Japan’s currency as a refuge from the global economic crisis. Australia’s dollar slumped the most in a week against the U.S. currency as traders increased bets that the Reserve Bank of Australia will reduce its key interest rate from the lowest level in 45 years.

The yen advanced to 134.41 per euro. Japan’s currency gained to 100.60 per dollar from 100.99.
The greenback traded at $1.3361 against the euro from $1.3416. Australia’s dollar slipped to 70.90 U.S. cents from 71.39 cents yesterday. New Zealand’s dollar declined 1 percent to 58.18 U.S. cents, halting a four-day advance.