The Japanese Yen weakened against higher yielding currencies after an Australian report showed employment increased more than economists forecast, boosting demand for riskier assets. The Yen also weakened after reports showed Japan's producer prices fell for a 12th month and machinery orders unexpectedly declined, adding to speculation the government will take more measures to combat deflation and revive growth.

The Japanese currency fell the most against the Australian Dollar out of its 16 major counterparts as Asian stocks advanced on optimism the global economic recovery is picking up. The JPY weakened to 85.13 per Australian Dollar from 84.45 yesterday. Japan's currency fell to 133.17 per EUR from 132.59. It traded at 91.60 versus the U.S Dollar from 91.37.