The yen was one of the day's biggest losers as gains in European and U.S. stocks prompted investors to shed long positions in Japan's currency. Lower-yielding currencies like the yen tend to fare poorly when investors show a greater appetite for risk, seeking higher-yielding currencies and assets like stocks and commodities.
The yen traded near a 2 week low against the EUR as renewed signs the global economy is weathering Europe's debt crisis sapped demand for the relative safety of the Japanese currency. The yen is set for its biggest weekly drop against the Australian dollar since December as Asian stocks extended a global rally after the European Central Bank President said the economic recovery is gaining momentum. Japan's currency was at 77.57 against the Australian dollar from 77.52 yesterday, and is set for a 4.9 % drop this week.