The yen and Swiss franc rose against most of their major counterparts after Japan raised the severity rating for the nuclear crisis that began last month to the level of the 1986 Chernobyl disaster, discouraging demand for higher-yielding assets. New Zealand’s dollar advanced to a five-month high against the greenback as the central bank said exports will support the currency. Canada’s dollar fell from almost the highest level in more than three years as the Bank of Canada left interest rates unchanged and said the persistent strength of the currency is hampering exports. Sterling slid versus the euro as the U.K.’s inflation unexpectedly slowed. “The strength of the yen and the franc are on the back of the unsettled markets,” said Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York. “Even amid the negativity today, the market is still paying attention to central bank commentary and interest rate outlooks, which is why New Zealand’s dollar is up and Canada and the pound are down.” The yen appreciated 1 percent to 83.80 versus the dollar at 11:53 a.m. in New York, from 84.60 yesterday, after reaching 83.47, the strongest level since April 1. The euro traded at $1.4455, compared with $1.4436, after touching $1.4520, the highest level since January 2010, and then paring its gain. The Swiss franc appreciated 1 percent to 89.74 centimes versus the dollar, from 90.67. Euro Above $1.45 The euro reached a level above $1.45 for the first time since January 2010 as officials of the International Monetary Fund, the European Commission and the European Central Bank were due to be in Lisbon today to start preparing an estimated 80 billion euros ($116 billion) in aid for Portugal, the third euro nation to request a bailout in a year. The European Union aims to reach an agreement on the aid package on May 16, about three weeks before Portugal’s early election on June 5. Canada’s dollar fell to the lowest level in almost a week against its U.S. counterpart, depreciating 0.6 percent to 96.19 cents. The Bank of Canada held its target lending rate at 1 percent, where it has been since September. The currency touched 95.27 on April 8, the strongest level since November 2007. The New Zealand dollar rose 0.7 percent to 78.54 cents per U.S. dollar after touching 78.84, the highest since Nov. 8. Reserve Bank Governor Alan Bollard said today the economy will get a boost from higher farm export prices that will underpin the nation’s currency and may stir inflation. Weaker Sterling The pound slumped to its weakest level against the euro in almost six months as the U.K.’s inflation unexpectedly slowed in March, discouraging the Bank of England from raising its 0.50 percent target lending rate. Consumer prices rose 4 percent from a year earlier, down from the 4.4 percent pace in February, which was also the median forecast in a Bloomberg News survey of economists. Sterling lost 0.9 percent to 89.07 pence per euro after reaching 89.14, the weakest level since Oct. 25. The pound decreased 0.5 percent to $1.6266. The yen and franc gained as Japan’s Nuclear and Industrial Safety Agency raised the severity rating of the Fukushima crisis to 7, the highest level. An earthquake striking Chiba, east of Tokyo, and shaking buildings in the capital had a magnitude of 6.2 according to the U.S. Geological Survey. Another earthquake with a magnitude of 6.3 struck Fukushima prefecture in the afternoon, according to the Japan Meteorological Agency. Earthquake Damage Economic and Fiscal Policy Minister Kaoru Yosano said earthquake damage may hurt the economy more than previously estimated. The government last month said damages could reach as much as 25 trillion yen ($300 billion). The IMF lowered its 2011 forecast for Japanese growth to 1.4 percent from 1.6 percent in its World Economic Outlook report yesterday, citing effects from the disaster. “Yen-buying pressure may intensify against a backdrop of Japanese investors’ risk reduction and a worldwide equity downward correction,” said Junya Tanase, chief currency strategist at JPMorgan Chase & Co. in Tokyo. “We expect dollar-yen to decline towards 80 in coming several weeks.” Japan’s currency soared to a post-World War II record of 76.25 versus the dollar on March 17, six days after a magnitude- 9 quake and tsunami hit northeastern Japan. The yen had gained on bets insurance companies would repatriate overseas assets to pay for reconstruction. Group of Seven nations jointly intervened on March 18 by selling the yen to stem its advance. “The yen strength today is a temporary concern and is not the reversal of the trend put in place by intervention,” Wells Fargo’s Bennenbroek said. The U.S. trade deficit narrowed in February from a seven-month high as imports decreased for the first time in four months. The gap shrank to $45.8 billion from $47 billion in January, Commerce Department figures showed. The median forecast of economists in a Bloomberg News survey was for a decrease to $44 billion from a previously reported $46.3 billion. To contact the reporters on this story: Allison Bennett in New York at abennett23@bloomberg.net; Liz Capo McCormick in New York at emccormick7@bloomberg.net To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

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