The yen declined against the euro and the dollar as stocks recovered ground, damping demand for currencies perceived as a safe haven. The Australian dollar rose against all but one of its 16 most active counterparts as the nation’s central bank held interest rates steady and said business investment is set to expand. The MSCI Asia Pacific Index of shares rose 1.1 percent. Riskier assets were also bolstered after a government report showed Australia’s trade surplus swelled in May to A$1.65 billion ($1.4 billion), paced by Asian demand for coal and gold. “The yen came under pressure as stocks and some commodity currencies rebounded,” said Ian Stannard, a currency strategist at BNP Paribas SA in London. “The Aussie dollar led the gain. Although the central bank kept rates on hold as expected, there’s still a lot of optimism about the country’s economic outlook.” The yen fell 0.3 percent against the euro to 110.37 as of 7:45 a.m. in London, and was little changed against the dollar at 87.77. The euro rose 0.4 percent against the dollar to $1.2582. Australia’s currency advanced 0.7 percent to 84.51 U.S. cents, after dropping to 83.16 cents on July 1, the lowest since June 10. The so-called Aussie bought 74.07 yen from 73.67 yen. Policy makers led by Governor Glenn Stevens kept the overnight cash rate target at 4.5 percent, the Reserve Bank of Australia said in a statement today. To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net

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