The yen rose against the dollar after the U.S. government delayed the announcement of a financial- recovery plan, prompting traders to seek a refuge. Japan’s currency also gained for the first time in three days versus the euro as European and Asian stocks declined, spurring investors to trim holdings of higher-yielding assets funded in yen. The pound rose for a fourth day against the euro after Barclays Plc, the third-biggest U.K. bank by assets, said earnings rose more than analysts estimated in the second half. “There’s a little bit of uncertainty about the fiscal stimulus plan in the U.S. and the next round of finance support initiatives,” said Paul Robson, a London-based currency strategist for the Royal Bank of Scotland Group Plc. “This has led people to take back some of their more risk-positive positions.” The yen rose 0.5 percent to 91.51 per dollar as of 9:39 a.m. in London, from 91.89 in New York last week. It earlier fell to 92.42, the lowest level since Jan. 8. The yen climbed 0.9 percent to 117.83 per euro from 118.85. The euro weakened to $1.2901, from $1.2940 last week, and traded at 87.21 British pence, from 87.52 pence. Europe’s Dow Jones Stoxx 600 Index slipped 0.6 percent. The MSCI Asia-Pacific Index decreased 0.4 percent and Standard & Poor’s 500 Index futures dropped 1.3 percent. The yen advanced versus all of the 16 most-active currencies today, strengthening 1.5 percent to 61.16 versus Australia’s dollar, 2.4 percent to 9.3776 against South Africa’s rand and 0.9 percent to 48.42 versus New Zealand’s dollar. Senate Approval U.S. officials said yesterday a one-day delay would allow the U.S. administration to focus on getting Senate approval of President Barack Obama’s fiscal stimulus. The announcement coincided with continued discussions on the details of the plan. Geithner is scheduled to unveil the measures at 11 a.m. tomorrow. Policy makers are debating proposals aimed at addressing the toxic debt clogging banks’ balance sheets. Futures traders increased bets to the most since April that the yen will strengthen against the dollar, figures from the Washington-based Commodity Futures Trading Commission show. The difference in the number of wagers by hedge funds and other large speculators on an advance in the yen compared with those on a drop -- so-called net longs -- climbed to 50,518 on Feb. 3, the highest level since April 29, compared with net longs of 49,007 a week earlier. Implied volatility on one-month dollar-yen options climbed to 18.63 percent from 18.12 percent on Feb. 6, indicating a greater risk of exchange-rate fluctuations that can erode profit on so-called carry trades. In these trades, investors get funds in a country with low borrowing costs and invest in another with higher rates. ‘Under Pressure’ Japan’s currency also strengthened on speculation local investors brought home some of their overseas earnings before the nation’s fiscal year ends on March 31. “The dollar may remain under pressure as Japanese firms repatriate funds back into Japan as they prepare for book closing in March,” said Nobuaki Kubo, vice president of foreign exchange in Tokyo at BBH Investment Services Inc., a unit of New York-based Brown Brothers Harriman & Co. Benchmark interest rates are 3.25 percent in Australia and 3.50 percent in New Zealand, compared with 0.1 percent in Japan, encouraging investors to seek higher returns elsewhere. Daiwa SB Investments Ltd. is urging clients to put their money into Brazil, Mexico and Turkey after the yen’s 55 percent gain against their currencies last year made emerging markets a bargain. A year ago, it wasn’t recommending any developing nation funds. “A lot of assets have gotten extremely cheap and Japanese investors are looking to park their money somewhere,” said Kenichiro Ikezawa, who oversees about $3 billion as a fund manager at the second-largest brokerage in Tokyo. “Emerging markets including Brazil, Mexico and Turkey look attractive. We would like to invest more in such countries.”

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