Yen Rallies to Record Against Dollar

The yen touched a post-World War II high against the dollar and rallied versus most of its other major counterparts as European debt turmoil spurred demand for a refuge before tomorrow’s summits.

The Canadian dollar slid for the first time in four days versus the greenback after the Bank Canada cut its outlook for growth. The dollar rose against the South African rand and Mexican peso as a drop in U.S. consumer confidence buoyed Treasuries. The yen pared its gain versus the dollar as Nikkei said the Bank of Japan will consider additional monetary easing.

“You’re seeing a general flight-to-quality, risk-off type of sentiment, and the yen is a frequent recipient of those moves,” said Carl Forcheski, a director on the corporate currency sales desk at Societe Generale SA in New York. “The market is watching the events in Europe.”

The yen rose 0.1 percent to 76 versus the dollar at 1:05 p.m. New York time after rallying to a record 75.74. Japan’s currency advanced 0.1 percent to 105.90 against the euro. The euro traded at $1.3922 after earlier rising to $1.3960, the highest level since Sept. 8.

Canada’s dollar fell 1 percent to C$1.0142 versus the U.S. currency after the Bank of Canada said the nation’s economy will grow more slowly than projected and removed a reference to withdrawing stimulus. The target lending rate was held at 1 percent, where it has been since September 2010.