The yen rose to a three-week high against the dollar and advanced
versus the euro as a surprise increase in U.S. initial jobless claims
prompted bets investors will sell higher-yielding assets.
The Swiss franc fell to the lowest against the dollar since July 2007
after the central bank unexpectedly halved its target lending rate to 1
percent.
``Risk appetite won't recover any time soon,'' said Robert Blake, a
senior currency strategist in Boston at State Street Global Markets
LLC, which has $15.3 trillion in assets under custody. ``We are in a
deep recession, and it has a long way to go. The yen is the biggest
safe-haven currency.''
First-time claims for U.S. unemployment insurance unexpectedly rose
last week to the highest level since 1992. The number of people staying
on benefit rolls in the prior week rose to 4.012 million, the most
since December 1982, the Labor Department reported today.
``Massive unwinding is still ongoing,'' said Brian Kim, a currency
strategist at UBS AG in Stamford, Connecticut. ``People are going after
the safe haven.''
The Standard & Poor's 500 Index dropped 1.6 percent on the jobs
data after tumbling yesterday to its lowest close since March 2003.
Europe's Dow Jones Stoxx 600 Index fell 3.5 percent.
The franc slipped for a sixth day against the dollar as the Swiss
National Bank reduced its target for the three-month London interbank
offered rate, or Libor, to 1 percent and promised a ``generous and
flexible'' supply of francs.
The Swiss currency touched 1.2228 against the dollar, the weakest level
in almost a year and a half. The franc fell 0.8 percent to 1.5284
versus the euro.
