By Margarita Snegireva. Chinese currency rallied as a slide in regional stock markets heightened risk aversion and crimped demand for higher-yielding currencies and assets.
China's main stock index tumbled more than 7 percent, as heavy snow across central and eastern China stoked worries about damage to the economy, while Japanese shares fell more than 3.5 percent.
“Asian stocks, especially in China, are really performing badly,'' said Kenichi Yumoto, senior dealer in Tokyo at Societe Generale SA, France's second-largest bank by market value." This is causing risk aversion among investors, prompting yen- buying.''
The yen gained to 106.23 per dollar at 2:49 p.m. in Tokyo from 106.72 in New York Jan. 25. The currency climbed to 155.87 per euro from 156.68. Against the euro, the dollar was at $1.4671 from $1.4681. Japan 's currency may rise to 105.80 per dollar and 155 a euro today, Yumoto said.