Sept. 14 (Bloomberg) -- The yen rose against all but one of its 16 major peers, trading near a 10-year high versus the euro as investors sought the safest assets after China put conditions on support to Europe’s highly indebted economies.
The Japanese currency gained against the euro for a fifth day. China’s Premier Wen Jiabao signaled developed nations should cut deficits and create jobs rather than relying on his country to bail out the world economy. The European Union and the U.S. should open their markets in return for investments, Wen said today. Finance ministers from Brazil, Russia, India, China and South Africa, the so-called BRICS nations, will meet next week to discuss Europe’s debt crisis.
“If you’re looking for a safe haven, it needs to be big and liquid,” said Simon Derrick, chief currency strategist at Bank of New York Mellon in London. Investors will “say maybe we need to continue to reduce our risk toward the euro zone and the euro in particular. You’re talking about gains in the dollar, you are talking about the yen.”
The yen was little changed at 105.24 per euro at 11:11 a.m. in London. It reached 103.90 on Sept. 12, the strongest since June 2001. Against the dollar, the yen climbed 0.1 percent to 76.85. The dollar weakened 0.1 percent to $1.3690 per euro.
“Countries must first put their own houses in order,” Wen said at the World Economic Forum in Dalian, China. He reiterated his June message that China can offer “a helping hand” to Europe by investing there.
--With assistance from Kristine Aquino in Singapore and Candice Zachariahs in Sydney. Editors: Matthew Brown, Gavin Finch
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