NEW YORK: The yen Friday gained against the euro and the dollar as heavy volatility in the Japanese equity market reverberated through the currency market.
Near 2200 GMT, the euro bought 130.82 yen, down from 131.72 yen late Thursday.
The dollar traded at 101.14 yen, down from 101.82 the prior day.
The euro was essentially flat against the dollar, trading at $1.2936 compared with $1.2935.
Analysts noted that Japanese officials were concerned by Thursday's seven-percent plunge in the Japanese Nikkei 225 equity Index. The dramatic drop in the Nikkei was accompanied by a rise in the yen, attributed to profit taking after recent weakness in the currency.
The Nikkei closed Friday 0.9 percent higher at 14,612.45, but not before veering more than 1,000 points between the highs and lows during another volatile session.
"These crazy moves in stocks have triggered a tremendous anxiety in Japan that has caused wild swings for the yen," said Kathy Lien of BK Asset Management.
The yen's recent surge may lead investors to wonder "if this pullback will become a deeper reversal," Lien said.
The gains follow the currency's steep decline in recent weeks amid the Japanese government's aggressive stimulus measures.
David Song, currency analyst at DailyFX, said the yen's strength may gain momentum "in the weekdays ahead should we see a growing number of Bank of Japan officials strike a more neutral tone for monetary policy" given the improving Japanese economy.
At the same time, he said, the Bank of Japan "may have little choice but to further embark on its easing cycle as there remains a 'high degree of uncertainty' surrounding the fundamental outlook."
Among other currencies, the British pound bought $1.5126 Friday, up from $1.5107 late Thursday.
The dollar retreated against the Swiss franc, trading at 0.9614 compared with 0.9680.
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