Yen hits six-week low

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SINGAPORE: The dollar climbed to a six-week high against safe-haven yen on Thursday, as news of Japan's plans for an economic stimulus package and growing expectations for the Bank of Japan (BOJ) to ease policy helped support risk sentiment.

The yen remained on the defensive after retreating in the past two weeks due to a broad recovery in risk appetite, speculation about M&A-related yen-selling as well as expectations for more BOJ monetary stimulus.

Gains in Japanese equities, which were supported by media reports that the Japanese government was planning to compile a stimulus package of at least 20 trillion yen, dragged on the safe-haven yen.  The dollar rose to as high as 107.49 yen, its strongest level since June 7, and last changed hands at 106.90 yen, up 0.1 percent on the day.  The dollar's advance took a pause ahead of chart resistance at around 107.72 yen, the top of the cloud on the daily Ichimoku chart, a popular technical analysis tool. While the dollar may face some selling for now, it seems poised for a further push higher against the yen, said Shinsuke Sato, head of FX trading group for Sumitomo Mitsui Banking Corporation in Tokyo.