Yen Gains as Spain Bailout Delay Fuels Haven Bid

The yen was set for weekly gains versus most of its major peers after Spanish Prime Minister Mariano Rajoy delayed seeking a second rescue for his country, spurring demand for haven assets amid Europe’s fiscal turmoil.

The euro remained lower following a two-day decline as three Spanish regions said they will need emergency loans. Moody’s Investors Service said its review of Spain’s debt rating will continue through September and reiterated risk of a possible downgrade. The dollar was supported before data that may show improving consumer sentiment and factory orders and as investors weigh whether Federal Reserve Chairman Ben S. Bernanke will announce new stimulus when he speaks at an annual symposium in Jackson Hole, Wyoming today.

The yen is “resilient as it’s a risk-off market,” said Ken Takahashi, assistant vice president of global markets in New York at Sumitomo Mitsui Trust Bank Ltd. “I don’t think Bernanke will make any commitment to specific policy in Jackson Hole.”

via Bloomberg

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