Jakarta, Financeroll.com - The yen and the dollar rose against the euro as Asian stocks extended a worldwide decline, boosting demand for the two currencies as a refuge from financial turmoil.

The yen gained against all of the 16 most-active currencies as the MSCI Asia Pacific index of regional equities slid for a second day on renewed concern the global recession will depress corporate earnings. The Australian dollar fell for a fourth day versus the greenback and New Zealand’s currency weakened as the share declines damped demand for higher-yielding currencies.

We need to assess reality once again during the earnings season to see if the recent optimism can be justified. Caution ahead of the reporting may trigger selling of stocks and boost demand for the dollar and the yen.

The dollar rose to $1.3182 versus the euro after touching $1.3177, the strongest level since April 1. The yen climbed to 131.90 per euro. Japan’s currency traded at 100.05 per dollar. Australia’s dollar dropped to 70.67 U.S. cents and New Zealand’s dollar fell to 57.19 U.S. cents.

Written by justin
http://www.financeroll.com