Yen Rises 3rd Day Versus Euro on Slowing Growth, Greece Concern

April 7 (Bloomberg) -- The yen rose for a third day against the euro on concern a recovery in the 16-nation region will be hampered by discord over Greece’s rescue package, boosting demand for Japan’s currency as a refuge.

The euro traded near its lowest since 1999 against Australia’s dollar before reports that may show European producer prices fell for a 14th month and German factory orders dropped. The yen strengthened against the greenback on speculation Federal Reserve Chairman Ben S. Bernanke will reiterate the central bank’s pledge to keep rates near zero to help sustain a recovery in the world’s largest economy.

“We certainly see some downside risks to the euro as they don’t seem to have a final credible solution to Greece’s fiscal problems,” said Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia. “The worse that these Greek concerns get eventually there will be cuts to global growth forecasts.”

The yen rose to 125.36 per euro as of 9:19 a.m. in Tokyo from 125.67 in New York, when it gained by the most since Feb. 23. Japan’s currency traded at 93.70 per dollar from 93.79. The euro weakened to $1.3379 from $1.3399 in New York, when it fell as low as $1.3355, the least since March 26.