The Japanese yen that showed strength against its major rivals on Monday morning in Asia pared some of its gains shortly. The yen thus fell from an 11-day high against the Swiss franc, 5-day high versus the euro and a 4-day high against the UK's sterling.

The Japanese stock market was trading in positive territory on Monday morning, led by banks and exporters on expectations of revival in the economy following the announcement of the third stimulus plan by the Japanese Prime Minister Taro Aso last week. The benchmark Nikkei 225 Index, having opened weaker at 8,930 compared to its previous close of 8,965, is currently trading at 8,995, up 31.28 points, and the broader Topix index of all First Section Issues is gaining 4.12 points to 850.

Last week, the Japanese government unveiled a massive stimulus package of 15.4 trillion yen, which is primarily in the form of spending and tax cuts, to protect the world's second largest economy from a deepening recession. The plan outlined by the Liberal Democratic Party Thursday includes emergency spending to protect jobs and boost corporate financing.

In economic news, a report released by the Bank of Japan showed that Japan's corporate goods prices index or the producer price index fell 0.2% month-over-month in March. However, the decline was not as worse as the 0.5% drop in the previous month, although it was in line with expectations. Producer prices have been seeing a declining trend since September 2008.

Annually, producer prices fell 2.2% following a revised 1.6% drop in February. The decline was bigger than the 1.8% drop expected by economists. Meanwhile exports and import prices were down 3.2% and 17.2%, respectively in March compared to the year-ago period.

Most of the major world markets were closed on Friday on account of Good Friday.

The Japanese yen that advanced to an 11-day high of 86.45 against the Swiss franc by 8:15 pm ET Sunday moved slightly off thereafter. The franc-yen pair is currently trading at 86.78, compared to Thursday's closing value of 86.88.

Against the UK's sterling, the Japanese currency moved off after hitting a 4-day high in the early Asian session on Monday. The yen that reached as high as 146.47 versus the pound by 8:10 pm ET reversed direction thereafter and slipped to 147.22 before leveling off by 9:00 pm ET. The pound-yen pair that closed Thursday's trading at 147.45 is currently worth near 147.1.

The Japanese currency dropped to 100.52 against the US dollar by 9:45 pm ET from previous high of 100.25 hit around 8:10 pm. The dollar-yen pair is currently worth near Thursday's closing value of 100.43.

The yen gained more than 2 percent against the buck last week after having hit a new multi-month low on April 6. However, the pair was generally lacking clear direction thereafter.

The Japanese yen that jumped to a multi-day high of 131.66 against the euro by 8:15 pm ET retreated to 132.2 at about 9:45 pm. The euro-yen pair moved sideways thereafter and is currently trading at 132.13. The pair was worth 132.26 at Thursday's close.

There are no important economic reports scheduled to be released on Monday in Europe and North America.

The yen was range bound against the Canadian dollar on Monday morning in Asia. The pair moved in a range between 82.05 and 81.6 in the session. The Japanese yen that closed Thursday's deals at 82.10 against the Canadian dollar is currently trading at 81.94.

Against the Australian and New Zealand currencies, the Japanese yen advanced from new multi-day lows in the early Asian session on Monday.

The yen that dropped to a weekly low of 72.66 against the aussie by 7:15 pm ET Sunday drifted higher to 72.11 after an hour. The yen, however, failed to maintain momentum thereafter. The aussie-yen pair, which closed Thursday's deals at 72.26, is currently quoted at 72.56.

The yen that reached a 6-day low of 58.89 against the New Zealand dollar by 7:15 pm ET drifted higher to 58.52 before losing ground again at 8:20 pm. The kiwi-yen pair that closed Thursday's trading at 58.59 is currently trading near 58.8.

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