Yen reaches multi month highs against dollar and euro

The yen hit new multi-month highs versus the dollar and the euro in Asian trade on Thursday as cautious traders snapped up the safe haven currency amid concerns over the faltering bank sector in Spain.

The euro was at 97.47 yen in Tokyo, falling from 97.76 in New York trading on Wednesday and the lowest it has been since 16 January, when it fell to 97.02 yen. The single currency has not dropped below 97 yen since 2000. Meanwhile, the greenback dropped to 78.73 yen, versus 79.06 in New York, the lowest level it has seen since 17 February when it spiralled to 78.53 yen.

The euro stood at $1.2373, slightly up from the $1.2366 it hit in New York. The yen’s rise, which hit all-time highs versus the dollar in 2011, triggered new concern on Thursday from the finance minister in Japan, who had previously issued a warning about more market interventions taming the currency’s value.

Jun Azumi said that this is not an indication of the state of the economy in Japan as it is somewhat speculative. Official data from the country revealed factory output growth was at only 0.2 per cent in April. Dealers are rushing to currencies viewed as safe-haven investments, especially the yen, as fears over the eurozone sent Italian and Spanish bond yields higher.