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The yen gained against the euro and the dollar on speculation the global economic recovery will slow, reducing demand for higher-yielding assets.
The yen rose to 134.95 per euro as of 1:25 p.m. in Tokyo from 135.89 in New York yesterday, after earlier reaching 134.90, the highest level since Oct. 20. Japan’s currency fetched 91.12 per dollar from 91.80. The dollar traded at $1.4808 per euro from $1.4804 yesterday, when it touched $1.4770, the strongest level since Oct. 13.

The dollar fell against the Japanese currency after the Wall Street Journal reported, citing people familiar with the situation, that the U.S. Treasury Department and GMAC Financial Services Inc. are talking about a third round of taxpayer support for the lender.
“This development may renew worries over the health of the U.S. financial sector,” Takashi Kudo, director of foreign- exchange sales at NTTSmartTrade Inc., a unit of Nippon Telegraph & Telephone Corp., said about the GMAC report. “This could add to the argument for the Fed to keep borrowing costs low, and would likely be negative for the dollar and positive for the yen.”
The infusion would range from $2.8 billion to $5.6 billion and be in the form of preferred stock that may increase the government’s stake from its current 34 percent if converted to common equity, the Journal said.
The dollar reached 92.32 yen yesterday, the strongest level , on speculation that Federal Reserves will change rhetoric on the duration of credit easing when policy makers meet next week.