2010.10.1501:01:00UTC+00Yen Soars To 2-day High Against Swiss Franc And Aussie

The Japanese yen strengthened against its major rivals on Friday morning in Asia as a decline in most Asian stocks prompted traders to seek safe-haven currencies. The yen advanced to a 2-day high against the currencies of Australia and Switzerland.

Lower-yielding currencies like the yen and the dollar typically strengthen in times of stock market slide as investors consider them as safe-haven.

The Japanese stock market is trading notably lower today with investors tracking the overnight negative close on Wall Street and indulging in some profit taking after the previous session's strong gains.

The benchmark Nikkei 225 index, which declined to around 9,480, is currently trading at 9,537.78, down 46.28 points or 0.49% from its previous close.

Among other markets in the Asia-Pacific region, Australia, Shanghai, Malaysia and South Korea are trading weak, while New Zealand, Taiwan and Singapore are in positive territory.

Bank of Japan Governor Masaaki Shirakawa said today that the Central Bank is carefully examining the economic and price moves and reiterated to take suitable policy action.

"It has become more likely that the return of Japan's economy to a sustainable growth path with price stability will be delayed," Shirakawa said in a speech to a meeting of the central bank's regional branch managers.

The Japanese yen touched a 2-day high of 85.17 against the Swiss franc around 11:05 pm ET. The franc-yen pair that closed Thursday's North American trading at 85.53 is presently quoted at 85.20. On the upside, the yen may find target around the 84.80 level.

The yen also advanced to as high as 130.19 against the pound, 114.13 against the euro and 81.35 versus the US dollar before holding steady around 10:25 pm ET.

The yen that closed Thursday's North American deals at 130.48 against the pound, 81.49 versus the greenback and 114.77 against the euro is presently quoted at 130.24, 81.41 and 114.31, respectively.

The Japanese currency climbed to a 2-day high of 80.57 against the Australian dollar around 10:00 pm ET, compared to 81.02 hit late New York Thursday. The aussie-yen pair is presently worth 80.72 with 79.80 seen as the next likely target level.

The yen also inched higher to 80.93 against the Canadian dollar and 61.58 against the NZ dollar around 10:00 pm ET and both the pairs leveled off thereafter.

The yen that closed Thursday's North American trading at 81.18 against the loonie and 61.88 versus the kiwi is presently quoted at 81.03 and 61.71, respectively.

Looking ahead, the final numbers of Japan's industrial production and capacity utilization for August will be released at 12:30 am ET.

Italian and euro-zone trade balance for August and CPI for September are expected in the upcoming European session.

Across the Atlantic, US business inventories for August, retail sales, CPI and monthly budget statement-all for September and the Empire manufacturing and the University of Michigan consumer confidence data-both for October have been slated for release in the North American session.

Canada's New motor vehicle and manufacturing sales-both for August are also on tap in the New York session.

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