Yen gains on plunge in high-yield currencies

The yen rose on Thursday as investors booked profits on the rally this week in high-yielding currencies such as the New Zealand dollar.
New Zealand's currency also extended losses after the nation's central bank raised interest rates but gave few signs that more tightening was in store, triggering a fall in the Australian dollar.
The kiwi had posted its biggest one-day decline versus the US dollar in 1-1/2 years on Wednesday.
"Profit-taking in the New Zealand dollar and other high-yield currencies against the yen is driving the market today," said Kotaro Kunimochi, director of forex trading at Barclays Bank in Tokyo.
But traders said the yen, stuck near a 32-month low against the US dollar hit earlier in the week, would remain capped by a market view that Japanese interest rates will stay near zero even after Japan overcomes deflation.
The yen's yield disadvantage has made the currency the year's biggest loser. A Bank of Japan index of the yen's trade-weighted and inflation adjusted exchange rate hit a 20-year low last month.
Earlier this week, the yen sank to a record low against the euro and its weakest level versus the Canadian dollar in 13 years. It also hit 8 1/2-year lows against the New Zealand and Australian dollars, and a seven-year trough versus sterling.
The US dollar, meanwhile, has been basking in the prospect of more rate hikes by the Federal Reserve and expectations for more dollar buying by US companies shifting overseas profits back home to take advantage of a year-long US tax break.
The dollar fetched 120.70 yen, down from around 121.05 yen in late US trade but in sight of the 32-month high of 121.40 yen hit on Monday.
The euro bought around $1.1715, slightly down on the day.
More active were the Antipodean currencies.
The New Zealand dollar bought 69.75 US cents, down more than 3 percent from the six-month high around 72.00 cents hit on Monday.
The Reserve Bank of New Zealand lifted its base rate on Thursday to 7.25 percent - highest among major industrialised nations. But it said further tightening would depend on the extent to which the solid housing sector and domestic spending moderate in coming months.