Yen Rises Against Higher-Yielding Currencies on Slowdown

The yen strengthened against higher-yielding currencies such as the Australian and New Zealand dollars as signs the global economic slowdown is deepening boosted demand for safer assets.

Japan’s currency climbed to five-week highs versus both the Aussie and kiwi after reports showed manufacturing in the euro area and China contracted in August. Australia’s dollar dropped to the weakest since July versus the greenback after retail sales in the nation fell. Federal Reserve Chairman Ben S. Bernanke said last week a third round of bond purchases, or quantitative easing, shouldn’t be ruled out to spur growth.