Yen up in Asia after deadly Brussels blasts

Yen up in Asia after deadly Brussels blasts

TOKYO - The safe haven yen rose in Asia against the dollar and the euro on Wednesday, after deadly bombings in Brussels claimed by the Islamic State group left around 35 people dead.

In New York overnight there was little in the way of a strong flight to safety often seen after such incidents, with the greenback moving modestly higher.

But in Tokyo trading Wednesday, the US currency slipped to 112.15 yen from 112.35 yen in New York, while the euro fell to 125.77 yen from 126.01 yen.

The single currency was flat at $1.1216.

"It's looking to be a question of buy yen first as a hedge and ask questions later," Neil Jones, head of hedge fund sales at Mizuho Bank Ltd in London, told Bloomberg News.

The British pound, meanwhile, slumped after the explosions in Brussels were seen as bolstering forces campaigning for Britain to leave the European Union.

The pound fell to $1.4209 in Tokyo from $1.4215 in New York.

"The Brussels attacks have lent support to pro-Brexit proponents that migration leaves Britain vulnerable to terror activity," IG market strategist Bernard Aw said.

Britain votes in a referendum on June 23 on whether it should leave the EU or remain a member.

Looking ahead, the focus is on separate speeches later Wednesday by Bundesbank president Jens Weidmann and Bank of England deputy governor Andrew Bailey, National Australia Bank said in a note to clients.

The release of new home sales data for February in the United States and a speech from St. Louis Federal Reserve president James Bullard - a voting member of the Federal Open Market Committee - will also be closely watched.

Against emerging Asian currencies, the dollar fell 1.08 per cent against the Malaysian ringgit and declined 0.20 per cent against the Indonesian rupiah.

But the greenback rose 0.27 per cent against the Indian rupee and gained 0.16 per cent on the South Korean won.

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