The Australian dollar held near two-week highs against the yen on Tuesday as the Japanese currency continued to lose its safe-haven allure, offering some support to currencies still offering higher yields. The Aussie, which often moves in tandem with share prices, rose against the lower-yielding yen despite stock markets falling across Asia on Tuesday.
Aussie's strength against the yen also helped it recoup some of its losses against the US dollar. Analysts said the apparent diminishing safe-haven appeal of the yen pointed to some loosening in the close correlation between Aussie and stock markets, which are widely viewed by investors as a barometer of risk appetite.
Aussie gained against the yen to 61.57 yen from 60.32 yen seen late here on Monday, and just a touch below a two-week high of 61.83 seen on Monday. Against the US dollar, it rose to $0.6476, off a low of $0.6389, but still below a high of $0.6511 struck on Monday. The yen fell to a three-month low against the US dollar on Tuesday, dragged by a Japanese economy that is mired in its deepest recession in a generation.