Yen Rises Versus Euro as Greek Debt Concern Aids Safety Demand

April 21 -- The yen rose against the euro for the first time in three days as concerns about debt-stricken Greece boosted demand for Japan’s currency as a refuge.

The euro weakened against 14 of its 16 major counterparts as Greece starts talks today on activating a 45 billion-euro ($60 billion) rescue package. The yen advanced against higher- yielding currencies after Federal Reserve Chairman Ben S. Bernanke yesterday said proposals to give regulators authority to dismantle large financial firms would be “constructive.” “Greece’s ability to resolve its debt problem is an ongoing worry,” said Toshihiko Sakai, head of trading for currencies and financial products at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. “The trend is for the euro to be sold. The yen may also be bought.”

The yen rose to 124.90 per euro as of 9:23 a.m. in Tokyo from 125.24 in New York yesterday. The euro dropped to $1.3413 from $1.3435 after touching $1.3409, the lowest since April 9. Japan’s currency traded at 93.11 per dollar from 93.22. Yesterday it touched 93.39 per dollar, the weakest since April 15.

The euro slid as Greek officials prepare to hammer out deficit-cutting measures they must accept to tap the funds, in talks with the International Monetary Fund, the European Central Bank and the other nations using the euro. Greece’s government needs to raise about 10 billion euros before the end of May and its soaring financing costs are lending urgency to the talks.