Yen, Dollar Advance as U.S. House Delay Boosts Demand

The yen and the dollar strengthened as investors sought perceived safety on concern U.S. deficit-reduction talks will fail to avert the so-called fiscal cliff that threatens to push the economy into a recession.

The 17-nation euro pared a weekly advance versus the greenback after House Republican leaders canceled a scheduled vote on Speaker John Boehner’s plan to allow higher tax rates for annual incomes above $1 million. The shared currency declined the most in two weeks as Italian Prime Minister Mario Monti resigned, clearing the way for elections that will focus on his crisis-fighting austerity policies. The New Zealand dollar led declines in higher-yielding currencies.