The yen fell against the euro and the dollar on speculation that Lehman Brothers Holdings Inc. will find a buyer, giving investors confidence to purchase higher-yielding assets funded in the Japanese currency.
The yen snapped four days of gains against the euro amid optimism a government-brokered takeover of the New York-based bank will support credit markets. U.S. officials, who are helping Lehman identify potential acquirers, may announce a deal before Asian markets open on Sept. 15.
The euro rose against the dollar.
Europe's common currency was also supported after Luxembourg Finance Minister Jean-Claude Juncker, reappointed today to represent finance ministers from the euro-area for a third term, said he doesn't expect a prolonged ``recession.'' European Central Bank Vice President Lucas Papademos told late yesterday the economy is likely to escape a recession and there are signs higher energy costs are driving up wages on a broad front.
Stocks in Europe and Asia rose for the first time in four days.