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Yen dives to five-month lows against dollar, euro
 
 
 
 
 
 
 AFP - Tuesday, April  7
LONDON (AFP) - - The yen fell Monday to five-month lows against the dollar and the euro as hopes for an economic recovery boosted demand for riskier assets, dealers said.
    
Markets largely ignored a North Korean long-range rocket launch on Sunday, which the United States, South Korea and Japan said was a ballistic missile test.
In early London trade, the dollar rose to 101.40 yen, a level last seen in October 2008. The US unit later stood at 101.34 yen, up from 100.29 in New York late on Friday.
The European single currency touched 137.41 yen, which was also the highest level since late October.
Meanwhile, the euro rose to 1.3531 dollars from 1.3483 dollars on Friday.
"The financial markets remain firmly in rising risk appetite mode as global equity markets continue to advance higher on optimism that the global economy is emerging from the worst point of the crisis," said economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London.
World stock markets marched higher on Monday when sentiment was boosted by pre-weekend gains on Wall Street and record demand for HSBC bank's historic rights issue, dealers said.
The yen was seen as safe haven during last year's market meltdown but it has suffered in recent months, with worries about the global financial system easing and fears about the health of the Japanese economy deepening.
Japanese investors are again buying foreign stocks and bonds, while overseas investors are selling Japanese stocks due to the "dismal state" of Asia's biggest economy, noted NAB Capital strategist John Kyriakopoulos.
"This is bad news for the yen and has been supportive of the Australian and New Zealand dollars," he added.
Japan's economy is feared to be heading for its worst recession since World War II as exports collapse.
A growing number of speculators are betting on further falls in the value of the yen "as the market is increasingly focusing on bad news out of Japan," Standard Chartered currency analysts wrote in a research note.
The dollar rose despite figures Friday showing that the US jobless rate hit a fresh 25-year high of 8.5 percent in March as employers shed 663,000 jobs.
Traders were looking ahead to monetary policy meetings this week in Japan and Britain, with the focus on whether the central banks will outline any new measures to boost the economy, in addition to their rock-bottom interest rates.
In London trade on Monday, the euro was changing hands at 1.3531 dollars against 1.3483 dollars late on Friday, at 137.16 yen (135.23), 0.9061 pounds (0.9085) and 1.5268 Swiss francs (1.5249).
The dollar stood at 101.34 yen (100.29) and 1.1283 Swiss francs (1.1301).
The pound was at 1.4934 dollars (1.4836).
On the London Bullion Market, the price of gold dropped to 881.04 dollars an ounce from 905 dollars an ounce late on Friday.
 
 
 
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