“The yen strengthened versus the dollar and euro as Japanese stocks slumped after Prime Minister Shinzo Abe failed to provide additional detail on stimulus measures, boosting demand for safer assets.
The euro declined against the dollar after a report showed the region’s economy shrank in the three months through March, in line with an earlier estimate. A volatility measure of Group-of-Seven currencies approached the highest since February. Australia’s dollar fell after the nation’s gross domestic product grew at the slowest pace in almost two years. The pound advanced as a report showed services output in the U.K. expanded in May by the most in more than a year.
“There’s general disappointment that Abe didn’t announce anything that was surprising or new,” said Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce in London. “There’s some disappointment in Japanese stocks and that’s pushing the yen up. The Aussie is likely to remain pressured after the GDP (AUNAGDPC) data.”
The yen advanced 0.5 percent to 99.58 per dollar as of 7:01 a.m. in New York after reaching 98.87 on June 3, the strongest since May 9. Japan’s currency appreciated 0.6 percent to 130.08 per euro. Europe’s shared currency dropped 0.1 percent to $1.3063.
Japan’s currency gained against all but one of its 16 major counterparts after the Topix index of shares closed down 3.2 percent….”
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