Yen Rises After EU Finance Ministers Signal Risks to Recovery

July 7 (Bloomberg) -- The yen may rise for a fourth day against the euro after European Finance Ministers said the global economic slump is not yet over and risks to recovery remain, spurring demand for the safety of Japan’s currency.

The yen strengthened against 15 of the 16 most-traded currencies after Luxembourg Finance Minister Jean-Claude Juncker said at a meeting of euro-area counterparts in Brussels that “we are still in the middle of the crisis.” The euro may extend losses on speculation overseas investors will bring home income from redemption and coupon payments on 37 billion euros ($51.7 billion) in European bonds maturing this week, according to Nomura International Plc.

“It’s natural that European policy makers aren’t confident in their economic recovery as the region is nowhere near that stage yet,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd., Japan’s largest currency broker. “The trend to avoid risk is likely to persist. It’s a positive for the yen and a negative for the euro.”

The yen climbed to 133.19 per euro as of 8:56 a.m. in Tokyo from 133.34 yesterday in New York. Japan’s currency advanced to 95.23 versus the dollar from 95.35. The U.S. currency traded at $1.3988 per euro from $1.3984.

The yen may advance to 132.50 per euro and 94.60 versus the dollar today, Ishikawa said.