Tokyo, Nov. 26 (Bloomberg) -- The yen may rise against the euro on expectations reports today will show German business confidence fell to a 10-month low in November. The yen may also rise after Bank of Japan Governor Masaru Hayami said the central bank needs to avert declines in the value of the country's currency. The yen rose to 120.91 against the euro at 3:42 p.m. in Tokyo, from 121.20 late yesterday in New York. It was at 121.92 against the dollar, from 122.12. The 12-nation currency was at 99.18 U.S. cents, from 99.22.
The German confidence numbers ``are a real risk for the euro,'' said Robert Rennie, senior currency strategist at Westpac Banking Corp. in Sydney. The European currency may drop below 99 U.S. cents today, he said. The Ifo institute's western German business confidence index probably fell for a sixth month, to 87.2 from October's 87.7, a Bloomberg News survey of 26 economists shows. The report may suggest growth in Europe's biggest economy won't pick up soon, eroding demand for assets in the region and the currency, analysts said. The yen may rise against the dollar after Hayami told a parliamentary committee it's important for the central bank to avoid a decline in the yen's value. He said yesterday Japan should be ``cautious'' about trying to weaken the yen to boost the economy.
``The repetition of Hayami's comments had some impact in boosting the yen,'' said Minoru Shioiri, a foreign exchange manager at Mitsubishi Securities Co. //www.quote.bloomberg.com