The yen climbed to a 13-year high against the dollar as the prospect of
a global recession prompted investors to dump higher-yielding assets
funded in Japan. The dollar rose to a two-year high versus the euro.
The dollar advanced against every major currency except the yen as
stocks tumbled after Samsung Electronics Co.'s profit slumped and Air
France SA said it will be difficult to meet earnings targets.
The yen rose 7 percent this week against the dollar, the biggest gain
since October 1998. It surged 14 percent against the euro, the biggest
weekly advance since the 15-nation currency's 1999 debut. The euro
headed for a 6 percent decline versus the dollar.
The pound fell to $1.5850, the lowest level since September 2003,
bringing the week's decline to 8.3 percent, on speculation the Bank of
England will lower interest rates to help avert a prolonged recession.
Against the euro, the pound weakened to 79.84 pence, dropping for a
fifth day, from 79.69 pence. U.K. gross domestic product contracted 0.3 percent in the three months through September.