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FOREX-Yen slips, near six-month lows vs dollar, euro

Published 04/05/2009, 09:41 PM
Updated 04/05/2009, 10:08 PM

* Risk appetite rises as Wall St lifts Asian stocks

* Little impact from North Korea rocket launch

By Satomi Noguchi

TOKYO, April 6 (Reuters) - The yen slid towards six-month lows against the dollar and the euro on Monday as investors' risk appetite grew, with Asian stocks climbing after Wall Street gained late last week despite dismal U.S. jobs data.

North Korea's launch of a long-range rocket that passed over Japan on Sunday provoked international outrage, but traders said the impact on financial markets in the region was limited as the outcome was largely in line with expectations.

Traders said a recovery in emerging market assets, buoyed by a global plan to help developing economies last week, added to investor appetite for riskier and higher-yielding currencies such as the Australian and New Zealand dollars.

"The market is continuing its trend to sell the yen on higher stocks, while a recovery in emerging markets is encouraging market players to buy higher-yielding currencies against the yen," said a trader at a Japanese bank.

The dollar rose as high as 100.93 yen on trading platform EBS, before retreating a tad to 100.91 yen, up 0.6 percent from late New York trade on Friday.

The euro reached to 137.05 yen on EBS, up 1.3 percent on the day.

The dollar also faced selling pressure, except against the yen, as increased optimism about the U.S. economy led investors to reduce holdings of the greenback as a safe-haven move.

Friday's data showed the United States lost 663,000 jobs in March, but investors thought the figure was not bad as many had feared.

The dollar index, a gauge of the greenback's performance against six major currencies, fell 0.5 percent to 83.765.

The euro gained 0.7 percent to $1.3575.

The New Zealand dollar jumped more than 2 percent to a five-month high above 60 yen, and the Australian dollar gained 1.3 percent to a six-month peak of 72.74 yen, according to Reuters data. (Editing by Hugh Lawson)

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