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The yen weakened across the board on Wednesday, sliding to a 10-month low against the euro, as recent hawkish comments from euro zone and US officials contrasted with Japan's loose monetary policy. The euro rose to around 117.28 yen on electronic trading platform EBS, its strongest since May 2010, and was seen climbing more on expectations the European Central Bank will start raising interest rates as early as next month.
Rising risk appetite encouraged investors to seek higher-yielding assets, with the Australian dollar climbing to a 29-year high over its US counterpart and a 10-month high against the yen. The US dollar rose to around 83.19 yen, a level last seen on March 11, when the yen initially fell after Japan's earthquake. It last traded at 82.98 yen, up 0.6 percent. The euro was down 0.1 percent on the day at $1.4097 but up 0.5 percent against the yen at 116.95 yen on electronic trading platform EBS. The Aussie traded at 85.61 yen after earlier climbing to a 10-month high.

Copyright Reuters, 2011

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