(Bloomberg) -- The yen advanced for a third day against the euro and gained versus the dollar on concern credit- market losses will keep increasing in Europe and the U.S., spurring demand for the relative safety of Japan’s currency. The yen rose versus all 16 major currencies as Asian stocks fell and Germany’s IKB Deutsche Industriebank AG said it lost 580 million euros ($810 million) in the fiscal year ending March 31, prompting investors to cut holdings of higher-yielding assets. The dollar and the euro declined against the yen after Russian President Dmitry Medvedev said before this week’s Group of Eight summit that the world is too reliant on the two currencies, damping the appeal of U.S. and European assets.
The yen climbed to 133.12 per euro as of 7:35 a.m. in London from 134.26 last week in New York, after earlier rising to 132.96, the strongest level since June 23. Japan’s currency gained to 95.32 versus the dollar from 96.04. It strengthened 1.2 percent to 75.65 per Australia’s dollar and advanced 1.1 percent to 59.85 per New Zealand’s dollar.The dollar was little changed at $1.3962 per euro from $1.3980, and rose to $1.6231 versus the pound from $1.6333, after reaching $1.6230, the strongest since June 23.
G-8 Meeting
The dollar dropped to a one-week low against the yen after Russia and India said the global economy is too dependent on the U.S. currency and called for revisions in how $6.5 trillion in foreign-exchange reserves are managed, as G-8 leaders prepare to meet in Italy this week. India should diversify its foreign holdings away from the dollar, Suresh Tendulkar, an economic adviser to Prime Minister Manmohan Singh, said in a July 3 interview.
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