TOKYO: The yen gained 0.5 percent to 118.91 per dollar as of 6:01 a.m. in London, after reaching 118.86, the strongest since Feb. 26. It rose 0.4 percent to 130.52 per euro.
The yen advanced to the strongest in a month versus the dollar amid increased demand for haven assets as Saudi Arabia and its allies bombed targets in Yemen.
The Australian and New Zealand dollars fell the most among developed-market currencies as higher-yielding assets lost their appeal to investors, after rebels known as Houthis pushed deeper into Yemen’s dwindling government-held area. The Canadian dollar and Norwegian krone rose with the price of oil.
“If things escalate in the Middle East, the risk is certainly to the downside for a lot of the risk proxies,” said Sue Trinh, senior currency strategist at Royal Bank of Canada in Hong Kong. “Kiwi and Aussie have been the biggest losers in this environment,” while the yen and Canadian dollar outperform, she said.
