Yen Approaches Month-Low Against Euro as It Loses Haven Allure

Feb. 24 (Bloomberg) -- The yen fell to near a one-month low against the euro on speculation a weakening Japanese economy damped demand for the currency as a haven.

Japan’s currency also traded close to a three-month low against the dollar before a government report tomorrow that economists say will show the trade deficit widened to the most since at least 1986.

“The yen appears to be losing some of its safe-haven status,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd., Japan’s largest currency broker. “Japan’s economic and political situation is poor, which may be behind this.”

The yen declined to 120.28 euro as of 10:38 a.m. in Tokyo from 120.10 late yesterday in New York, when it touched 121.93, the lowest level since Jan. 19. Japan’s currency traded at 94.68 per dollar from 94.61 yesterday, when it reached 94.95, the weakest level since Dec. 1.