Sept. 2 (Bloomberg) -- The euro fell against the yen after the European Central Bank left its benchmark interest rate at a record low as it seeks to prevent the region from slipping back into a recession. “We’ve had some fairly strong direction that it looks as though we’re going to be continuing liquidity over-year end, so that shouldn’t be a surprise,” said Jeremy Stretch, global head of foreign-exchange strategy at Canadian Imperial Bank of Commerce’s CIBC World Markets unit in London. “If we don’t get it, that might be the shock that could cause some interest.” The euro declined to 107.85 yen as of 12:50 p.m. in London from 108.15 yen in New York yesterday. It was at $1.2823 from $1.2809. The 16-nation currency appreciated to $1.2856 yesterday, the strongest level since Aug. 19. The dollar was at 84.12 yen from 84.44 yen. ECB policy makers are likely to extend emergency lending measures for banks, economists said before today’s meeting. The central bank has so far committed to lend banks unlimited cash at the benchmark rate until at least Oct. 12. ECB Help Council member Axel Weber said in an Aug. 19 interview that the ECB should help banks through end-of-year liquidity tensions before determining early next year when to withdraw emergency measures. The bank halted the withdrawal of the measures in May as Greece’s debt crisis spread through the region. Europe’s common currency fell 9.3 percent this year among 10 developed-world currencies, the most in the group, according to Bloomberg Correlation-Weighted Currency Indices. The yen, the best performer, has risen 15 percent, while the dollar has gained 2.6 percent. The euro gained 0.2 percent against the dollar after the central bank’s last meeting on Aug. 5, when policy makers left rates unchanged and Trichet said the region was recovering faster than forecast. ----With assistance from Christian Vits in Frankfurt. Editors: David Clarke, Peter Branton. To contact the reporter on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net To contact the editor responsible for this story: Keith Campbell in London at k.campbell@bloomberg.net.

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