Yen Falls to 5-Month Low on Speculation Recession Bottoming

April 6 (Bloomberg) -- The yen declined to a five-month low against the dollar and the euro as last week’s worldwide equities rally added to speculation that the worst of the global financial crisis may be over soon.

The yen also fell to weakest since November against New Zealand’s dollar and dropped against Australia’s currency after Federal Reserve Chairman Ben S. Bernanke said last week programs to unfreeze credit markets are working, damping demand for the Japanese currency as a refuge.

“Expectations are emerging that a global recession and financial crisis may be coming closer to a turning point,” said Akio Yoshino, chief economist in Tokyo at Societe Generale (Japan) Co., a unit of the French asset management firm that supervises the equivalent of $338 billion.

The yen traded at 136.04 per euro, the lowest since Oct. 21, at 8:24 a.m. in Tokyo, from 135.26 late on April 3 in New York. Japan’s currency touched 100.59 against the U.S. dollar, the weakest since Oct. 21.

New Zealand’s dollar advanced to 59.56 yen, the highest since Nov. 10, from 58.76.

North Korea’s rocket launch over the Sea of Japan during the weekend didn’t affect demand for the yen, according to Osamu Takashima, chief analyst at Bank of Tokyo Mitsubishi UFJ Ltd., a unit of Japan’s largest bank.

The rocket flew over Japan on a trajectory into the Pacific Ocean yesterday, according to a statement from the Japanese Prime Minister’s Office. U.S. President Barack Obama said yesterday the firing of the Taepodong 2 missile was “provocative” and a “clear violation” of a United Nations Security Council resolution.