* Yen, dollar climb on swine flu concerns
* Dollar hits 1-month low vs yen
* Mexico peso on track for worst day vs dollar in 5 months
(Updates prices, adds comment, changes byline)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 27 (Reuters) - The U.S. dollar and yen
gained broadly on Monday, as concerns about a widening outbreak
of swine flu in Mexico prompted investors to seek shelter in
the safety of both currencies.
News of the flu pandemic pushed the yen to a one-month peak
versus the dollar, drove the Mexican peso to its worst
performance against the greenback in five months, and pressured
currencies seen as higher risk, such as the Australian and New
Zealand dollars.
The concern was that the flu epidemic could delay any
global economic recovery.
"The swine flu has pushed traders to the safety of the yen,
although I don't expect this to have a very long life," said
Andrew Wilkinson, senior market analyst at options market maker
Interactive Brokers in Greenwich, Connecticut.
"The news has the potential to reduce travel, tourism,
trade, and to keep the consumers away from the malls."
In early afternoon trading, the dollar fell 0.4 percent
against the yen to 96.73 yen <JPY=>, close to an earlier
one-month low around 96.44 yen, according to Reuters data,
while the euro lost more than 2 percent to 125.82 yen
<EURJPY=R>.
Against the dollar, the euro fell 1.8 percent to $1.3011
<EUR=>, extending losses after comments by European Central
Bank governing council member Ewald Nowotny saying euro zone
rates will stay low for a long time. He also said the ECB is
ready to use quantitative easing measures if needed. See
[].
The euro zone's single currency had gained around 1.5
percent last week following a string of improved euro-zone
economic data.
The Mexican peso <MXN=>, meanwhile, traded at around
13.9040 per dollar, with the greenback up 4.3 percent on the
day, its best performance since November 2008. The U.S. dollar
also hit a nearly a one-month high at 13.9700 pesos.
SWINE FLU PRESSURE HIGH-YIELDERS
The swine flu in Mexico, which has spread across North
America and as far as New Zealand, may have killed 149 people
and the number of cases is seen rising, according to Health
Minister Angel Cordova. For more, see [].
In New York, Mayor Michael Bloomberg said the city has 45
confirmed or likely cases of swine flu and that number is
likely to rise as testing of more than 100 sick students
continued. See [].
An increase in risk aversion on concerns that the flu may
turn into a pandemic stung the higher-yielding Australian
dollar <AUD=>, down 1.6 percent against the U.S. dollar at
US$0.7116, and the New Zealand <NZD=> dollar, down 1 percent at
US$0.5666.
The New Zealand currency was also under selling pressure
because its central bank is expected to cut benchmark interest
rates to a record low of 2.5 percent this week and signal no
chance of a rise for a while. []
Analysts noted, however, that the intense overall risk
aversion may have been overdone and could fade, as long as
there is no more news of the flu outbreak spreading.
President Barack Obama said on Monday U.S. officials were
closely monitoring cases of swine flu in the country, but he
said there was no immediate cause for alarm.
Aside from flu concerns, analysts said market participants
were looking ahead to the European Central Bank's monetary
policy meeting on May 7.
The central bank is widely seen cutting its key interest
rate to 1 percent from 1.25 percent. Investors are watching to
see whether it will outline possible quantitative easing
measures to help bolster the recession-hit economy. []
(Additional reporting Nick Olivari; Editing by Chizu
Nomiyama)
