FOREX-Yen gains as flu fears stoke risk aversion

The yen strengthened broadly on Monday as concerns that an outbreak of swine flu in Mexico may spread into a global pandemic sent investors seeking currencies perceived as safe havens, while the Mexican peso fell sharply.
The flight to safety also boosted the dollar against currencies other than the yen, and dented currencies seen as higher risk such as the Australian and New Zealand dollars.
European shares fell 1.2 percent .FTSE as investors feared a flu pandemic could snap a nascent global economic recovery, sending the yen -- which typically gains during heightened risk aversion -- to a one-month high versus the dollar.
The Mexican peso fell around 3 percent versus the dollar after more than 100 people were confirmed to have died in Mexico from the swine flu virus, which has spread across North America and as far as New Zealand
The euro fell against the dollar, erasing most of Friday's gains which came after the closely-watched German Ifo survey showed business confidence improving more than expected, which boosted hopes that the euro zone economy may be over the worst. read more