The yen and the dollar strengthened for Introducing brokers forex, against most of their major counterparts as concern that unrest in the Middle East will spread boosted demand for safer assets.
Japan’s currency rose from a three-month low against the euro as stocks fell in Europe andAsia. Libyan leader Muammar Qaddafi’s son Saif said the country may have a civil war. The euro dropped after German Chancellor Angela Merkel’s Christian Democratic Union suffered an election defeat in the country’s richest state, fuelling concern that European Union attempts to deal with the sovereign debt crisis will be derailed. New Zealand’s dollar climbed on speculation higher payouts to farmers will boost the economic recovery.
The yen climbed the most against the South Korean won, appreciating by 0.6 percent to 13.44515 as of 11:32 a.m. in London. It was 0.4 percent stronger against the Australian dollar, at 84.07 yen. Japan’s currency traded at 113.79 per euro from 113.90 in New York on Feb. 18. It was little changed at 83.15 per dollar.
The euro slipped to $1.3685 from $1.3693, after earlier weakening to $1.3663. The New Zealand dollar climbed for a fourth day against its American counterpart and was 0.4 percent stronger at 76.44 U.S. cents. Currency moves maybe exaggerated today because of lower than usual trading volumes amid a U.S. public holiday, Christensen said.
The yen typically strengthens in times of political, financial and economic turmoil as Japan’s trade surplus makes the currency attractive because it means the nation doesn’t have to rely on overseas lenders.
Europe’s common currency pared losses after a report showed German business confidence unexpectedly rose to a record in February. The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 111.2 from 110.3 in January. That’s the highest since records for a reunified Germany began in 1991.
Economists predicted the index would hold steady, according to the median of 38 forecasts in a Bloomberg News survey.
The euro climbed for a second day against its Swiss counterpart, strengthening by 0.3 percent to 1.2973. It advanced by 0.2 percent against the Swedish krona to 8.7627.