SF: Yen Rises as Italy’s Leadership Boosts Debt-Crisis Concern
Dec. 10 (Bloomberg) -- The yen strengthened to highest in almost two weeks versus the euro after Italy’s prime minister said he intends to resign, rekindling speculation a change in government will derail efforts to solve the debt crisis.
Japan’s currency rose against all of its 16 major counterparts as global stocks declined and investors ended bets the yen would decline against the dollar. South Africa’s rand was the biggest loser against the yen before reports that may show inflation rose while mining production declined. Canada’s currency rose to the strongest level in seven weeks against the U.S. dollar.
“The political situation in Italy has added to uncertainty in Europe,” said Jane Foley, a senior currency strategist at Rabobank International in London. “This political uncertainty may linger for a while and that could be negative for the euro in coming months.”
The yen gained 0.4 percent to 82.16 per dollar at 8:25 a.m. New York time. It added 0.4 percent to 106.26 per euro. The dollar was little changed at $1.2936 per euro after adding as much as 0.4 percent.
--Editors: Paul Cox, Kenneth Pringle
To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
