Yen Advances to Two-Week High Versus Dollar on Risk Aversion

June 27 (Bloomberg) -- The yen strengthened to a two-week high versus the dollar and advanced versus the euro as a slump in stock markets around the world reduced demand for higher- yielding assets funded by loans in Japan.

Japan's currency also erased a weekly decline against the euro as European Central Bank council member Miguel Angel Fernandez Ordonez said an interest-rate increase next week ``is not certain'' and a report showed confidence among European executives and consumers dropped this month. The Canadian dollar rose to a three-week high as oil surged to a record.

``A lot of investors are taking their cues from equities,'' said Sophia Drossos, a currency strategist at Morgan Stanley in New York. ``Sentiment seems to be damped on the renewed spike in oil and the global outlook.''

Source: Bloomberg


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