* Yen rises broadly as risk aversion rises
* Nikkei reports BOJ may be considering new steps
* Weak U.S. housing data weighs on dollar
(Adds quotes, Updates prices)
By Nick Olivari
NEW YORK, Aug 24 (Reuters) - The yen jumped to a 15-year
peak against the dollar on Tuesday on fears the global economy
is slowing, testing Japanese authorities' resolve to stem the
currency's climb.
The yen's rise accelerated as stop-loss sales were
triggered in euro/yen at around 107 yen after the Japanese
currency hit a nine-year high versus the euro. Traders cited
macro hedge-fund selling of the euro against the dollar.
The U.S. dollar pared losses against the yen after the
Nikkei business daily reported the Bank of Japan is considering
additional steps to loosen monetary policy. Japan's Ministry of
Finance may consider unilateral yen-selling market
interventions if speculators drive up the currency, the paper
said. []
Declines in stock markets and far weaker-than-expected U.S.
housing data had already helped buoy the yen and other safe
havens such as the Swiss franc.
"The market's obviously on high alert for some form of
intervention, but until we see it, the stronger yen trend will
remain intact," said Brian Dolan, chief strategist at Forex.com
in Bedminster, New Jersey. "With U.S. yields where they are,
all simple intervention will do is give speculators better
levels at which to buy yen."
Japanese Finance Minister Yoshihiko Noda declined to
comment on the chance of currency intervention, saying only
that recent currency moves were one-sided and disorderly moves
could harm the stability of the economy and financial system.
For more, see: [] and [].
Traders took his comments as a sign the authorities were
not yet ready to act to curb yen strength.
The greenback was last trading down 0.9 percent against the
yen at 84.32 yen <JPY=> after going to a 15-year low of 83.61,
according to Reuters data. It fell to 83.58 yen on electronic
trading platform EBS <JPY=EBS>.
Dollar selling accelerated after a report showed sales of
previously owned U.S. homes fell to their slowest pace in 15
years during July. []
Investors "are buying yen as a hedge against obviously poor
economic news in the U.S. right now," said Greg Salvaggio, vice
president of trading at Tempus Consulting in Washington. "We
think 80 is clearly the next level (in dollar/yen) now."
YEN CROSSES
The euro traded as low as 105.45 yen <EURJPY=>, according
to Reuters data and 105.44 on EBS <EURJPY=EBS> , its lowest
since 2001. It was last at 106.94 yen, down 0.7 percent on the
day.
Technical analysts say the euro could be poised for a fall
toward 105.00 yen. It bounced off interim support at 105.50
yen, around the low reached in September, 2001.
Against the dollar, the single currency rebounded from a
six-week low after the housing data <EUR=> to trade up 0.2
percent at $1.2681 with a session peak of $1.2718.
The euro fell to its lowest against the Swiss franc on
Tuesday since the euro's launch in 1999 amid safe haven buying
of the Swiss currency.
The euro was down 0.8 percent against the Swiss currency at
1.3064 francs after going as low as 1.3050 <EURCHF=>, according
to Reuters data. The low on electronic trading platform EBS was
1.3049 francs <EURCHF=EBS>.
"The Swiss franc so far has been benefiting as a proxy of
the yen as investors search for a safe haven currency which is
free to appreciate," said Jonathan Granby of the DailyFX
Research Team. "However, the SNB was out yesterday commenting
on intervention so that may in time come to weigh on the franc
too and traders will be forced to turn to the classic safe
haven, the dollar."
(Additional reporting by Steven C Johnson, Wanfeng Zhou and
Aleksandra Michalska in New York)
(Reporting by Nick Olivari and Vivianne Rodrigues; Editing by
Andrew Hay)
