The Yen dropped against the euro for the first time in five days as positive news about economic recovery and rising value of Asian stocks caused a dent in the surging currency.
The yen slumped on a scale that equates it with 16 major currencies of the world amid reports that Australian consumers have gained confidence and also by increased orders placed at Japanese machinery giants.
In a related move, the Bank of Japan Governor Masaaki Shirakawa expressed eagerness to consider boosting the 5 trillion-yen, or $61 billion, in economic stimulus fund that was revealed last week.
The euro has seen rising fortunes for the last couple of days as it pushed the U.S. dollar down for second day in a row and the Swiss franc also reached new highs against the greenback.
The yen dropped 0.5 percent to 114.34 per euro as of 7:59 a.m. in London from its previous trading rate of 113.79 in New York yesterday. The Japanese currency slumped to 81.94 a dollar from its previous rate of 81.72. The euro surged to $1.3956 from $1.3924; it is still lower than its record high of $1.4029 on Oct. 7, the highest since Jan. 28.
IntercontinentalExchange Dollar Index dropped 0.3 percent to 77.166 today, an improvement from 76.906 on Oct. 7, which was the lowest level since Jan. 15.
The MSCI Asia Pacific Index of regional shares upped 0.3 percent and the Nikkei 225 Stock Average also saw a raise of 0.2 percent. A weaker yen is expected to fuel economic growth in Japan as companies will reap greater profits.
