TOKYO, March 31 (Reuters) - The dollar and euro advanced against the yen on Tuesday, buoyed by Japanese investors' demand on the last day of Japan's financial year.
The greenback was also supported as a safe haven amid risk aversion that battered other currencies such as the euro the previous day.
The dollar and yen, traditional safe havens during times of financial market turmoil, were boosted the previous day as fears of bankruptcy for U.S. automakers General Motors (GM.N) and Chrylser sparked a sharp drop in global stock markets.
But on Tuesday the dollar gained a slight advantage against the yen as the end of Japan's financial year generated book-keeping demand for foreign currencies.
"The dollar is being buoyed as Japanese investors try to secure the currency on the last day of the fiscal year. Investors' demand for the yen stemming from repatriation flows, on the other hand, appears to have peaked," said a trader at a Japanese bank. read more
The greenback was also supported as a safe haven amid risk aversion that battered other currencies such as the euro the previous day.
The dollar and yen, traditional safe havens during times of financial market turmoil, were boosted the previous day as fears of bankruptcy for U.S. automakers General Motors (GM.N) and Chrylser sparked a sharp drop in global stock markets.
But on Tuesday the dollar gained a slight advantage against the yen as the end of Japan's financial year generated book-keeping demand for foreign currencies.
"The dollar is being buoyed as Japanese investors try to secure the currency on the last day of the fiscal year. Investors' demand for the yen stemming from repatriation flows, on the other hand, appears to have peaked," said a trader at a Japanese bank. read more
