Tokyo - The yen declined and the Australian dollar rose as share rallies across the Asia-Pacific region improved investors’ appetite for risk.
Japan’s currency fell for the first time in three days as the Nikkei 225 Stock Average gained 0.9% and the MSCI Asia Pacific Index rose 0.7%. The Aussie advanced after data released on Friday showed hedge funds and other large speculators turned bullish on the currency for the first time since May.
“The recovery in stocks is spurring short covering in the dollar against the yen for now,” said Kumiko Ishikawa, a Tokyo- based analyst at Gaitame.com Research Institute.
Japan’s currency dropped 0.1% to 112.72 per dollar as of 7:01 a.m. in London and was little changed at 125.30 per euro from Friday. Australia’s dollar climbed 0.3% to 71.69 US cents, and New Zealand’s jumped 0.5% to 66.63 US cents.