The Japanese yen may extend its advance versus all of its major counterparts after a reduction in Greece's debt rating by Fitch Ratings and a Dubai developer's $3.65 billion loss discouraged demand for riskier assets. Japan's government announced today a 7.2 trillion yen economic spending package that includes 3.5 trillion yen to help regions, 600 billion yen for employment and 800 billion yen on environmental initiatives, the Cabinet said in a statement.

The JPY also rose on speculation Japanese officials won't act to weaken it even as they say they are concerned about the effect of yen strength on the economy. The Yen tends to strengthen during times of turmoil because Japan's trade surplus makes it less reliant on foreign capital. The nation's current-account surplus increased 42.7% to 1.4 trillion yen ($15.7 billion) in October from a year earlier, the Ministry of Finance said yesterday. The JPY traded at 130.01 per EUR, after appreciating yesterday as much as 2.4%, the biggest intraday gain since Nov. 27. Japan's currency was at 88.43 per Dollar, following a 1.2% advance.