TOKYO, Jan 27 (Reuters) - The yen extended its losses against the euro and the dollar on Tuesday after Japan said it would offer public funds to firms whose capital has been hurt by the financial crisis.
A trader for a European bank said the news could help give a further boost to the Nikkei share average, which finished the morning session up 3.5 percent, and bolster investors' risk appetite.
The dollar rose 0.5 percent to 89.57 yen and the euro climbed 0.9 percent to 118.50 yen. (Reporting by Masayuki Kitano)