Yen Falls to 2-Week Low as Stock Gains Damp Demand for Refuge

Feb. 22 (Bloomberg) -- The yen declined to a two-week low against the euro as rising Asian stocks damped demand for the Japanese currency as a refuge.

The yen dropped against all of its 16 major counterparts as the Nikkei 225 Stock Average jumped 2.3 percent after the Standard & Poor’s 500 Index rose 0.2 percent on Feb. 19. The dollar dropped against higher-yielding currencies on prospects the lack of U.S. job growth will keep Fed Chairman Ben S. Bernanke from raising the key rate after last week increasing the cost of direct loans to banks.

“A little bit of risk appetite is coming back in the market,” said Phil Burke, chief dealer for global foreign exchange and rates at JPMorgan Chase & Co. in Sydney. “Cross- yen will be supported.”

The yen dropped to 125.19 per euro as of 9:13 a.m. in Tokyo from 124.58 in New York on Feb. 19, after touching 125.24, the lowest since Feb. 4. The yen fell to 91.87 per dollar from 91.52. The greenback was at $1.3630 per euro from $1.3613 on Feb. 19, when it touched $1.3444, the highest since May 18.