The yen rose broadly while the dollar steadied on Wednesday as deepening unease about the world economy put stock markets back under downward pressure. Growing concern over the U.S. auto industry, which is seeking billions of dollars in government aid, kept investors away from risky positions, pushing European shares roughly 1 percent lower. Analysts saw more support for those currencies as markets wait to see whether a round of aggressive interest rate cuts by major central banks and plans for fiscal stimulus will help to take some of the sting out of the recession.
«At the moment we're grappling between whether the response from global central banks will come through ... and when we will see fiscal policy announcements," said Stephen Koukoulas, strategist at TD Securities in London.
Sterling rose 0.8 percent against the dollar and the euro, shaking off minutes from this month's Bank of England policy meeting that showed unanimity on cutting interest rates by a staggering 150 basis points, and that an even bigger cut had been considered.