Dollar jumps against the yen

THE dollar had its biggest advance against the yen in three weeks in New York after Japan sold its currency for a second day to protect exporters.

The yen rose to a three-year high against the dollar before the Japanese central bank sold the currency. The yen’s 10% advance this year raises the prices to US consumers of products made by companies from Toyota Motor Corp to Sharp Corp. Exports and capital spending accounted for all of the Japanese economy’s growth last quarter.

“The Bank of Japan is concerned the yen rally will get out of hand,’ said Michael Malpede, senior foreign exchange analyst in Chicago for Refco Group Ltd., which says it’s the largest futures brokerage by volume on regulated markets. “The stronger the yen gets, the greater the concern it will hurt Japan’s exports.” The dollar strengthened to 108.07 yen at 10.40am in New York from 107.27. Japan sold its currency at about 107.40 per dollar, said a trader at a bank that deals with the Bank of Japan. The yen also rose against the euro, to 132.34 per euro from 131.40.