Yen tumbles against dollar, euro in Asia

The yen slumped against the euro and dollar in Asia Friday as receding fears over eurozone deflation and buoyant sentiment steered investors into higher-yielding, riskier currencies.

The euro changed hands at 139.25 yen in Tokyo afternoon trade against 139.05 yen in New York Thursday afternoon, after rising to a five-year high of 139.69 yen earlier in Asian trade.

It was also at $1.3612 from $1.3601, while the dollar bought 102.29 yen against 102.24 yen.

Investors tend to buy the yen in times of uncertainty and sell it when the outlook is rosier.

Analysts said attention was focused on European and Asian trading cues with US dealers off for the Thanksgiving holiday.

"European markets made some further gains on receding risks of European deflation and ahead of tonight's eurozone flash inflation report for November," National Australia Bank said.

"Higher-than-expected German inflation would have helped to soothe some nerves that tonight's (consumer price index) could be another low read and stoke deflationary fears," it added.

Traders will use the latest eurozone inflation data to look for clues about whether the European Central Bank will launch further easing measures after cutting rates to a record-low 0.25 percent this month.

Prices rose at four-year-low 0.7 percent in October, which prompted the latest ECB rate cut in a bid to avoid deflation.

The dollar was mixed against other Asia-Pacific currencies.

It slipped to 32.11 Thai baht from 32.19 baht the previous day as opposition demonstrations in Thailand dragged into nearly a month.

The dollar also inched down to 1,058.34 South Korean won from 1,061.25 won, to 11,868 Indonesian rupiah from 11,990 rupiah, and to 62.29 Indian rupees from 62.32 rupees.

It firmed to Sg$1.2553 from Sg$1.2549, and to 43.76 Philippine pesos from 43.73 pesos while it was unchanged at Tw$29.60.

The Australian dollar fell to 90.87 US cents from 91.27 cents, while the Chinese yuan was unchanged at 16.74 yen.