Yen Gains After Bank of Japan’s Tankan Rises From Record Low

July 1 (Bloomberg) -- The yen rose against all 16 of the most-active currencies after the Bank of Japan’s Tankan survey showed sentiment among the largest manufacturers rebounded from a record low.

The U.S. dollar traded near a six-week high against the Canadian dollar after an industry report showed an unexpected drop in U.S. consumer confidence for June, increasing demand for the safety of the world’s main reserve currency. Australia’s dollar and Norway’s krone declined yesterday as crude oil tumbled, reducing the revenue of commodity exporters.

“A better Tankan will lift the yen today,” said Adam Carr, a senior economist in Sydney at ICAP Australia Ltd., part of the world’s largest interbank broker. “That’s specifically for Japan, which is doing relatively better.”

The yen rose to 135.12 per euro as of 9:01 a.m. in Tokyo from 135.21 in New York yesterday. It climbed to 96.23 per dollar from 96.36. The U.S. currency bought $1.4043 versus the euro from $1.4033.

Australia’s dollar was at 80.69 U.S. cents from 80.64 cents in New York yesterday. The krone traded at 6.4318 per dollar from 6.4311. The greenback was little changed at C$1.1621.

The BOJ’s index of sentiment among large makers of electronics, cars and other products rose to minus 48 from minus 58 in March, the Tankan survey showed. Economists surveyed by Bloomberg News predicted minus 43. A negative number means pessimists still outnumber optimists.