LONDON: The yen rose against the dollar and the euro lost ground to the greenback Tuesday, as investors sought safe-haven currencies amid the escalating nuclear crisis in Japan.
In London deals, the dollar slid to 81.52 yen from 81.65 yen late in New York on Monday.
And the European single currency sank to $1.3859 from $1.3985, while the safe-haven Swiss franc also drew strength from fears over the nuclear fallout.
"The traditional safe-haven currencies of the yen, Swiss franc and even the US dollar are outperforming, reflecting a sharp spike in global risk aversion which is undermining risk assets broadly," said economist Lee Hardman at The Bank of Tokyo Mitsubishi UFJ in London.
"Financial markets have been rattled by the growing risk posed by potential radiation leaks at the stricken nuclear power plants in Japan."
Explosions and fire rocked a quake-stricken nuclear plant in Japan Tuesday, pumping out dangerous radiation and sparking a rout for equities and panic buying in supermarkets.
Tokyo stocks, which were punished Monday and sent indexes around the world sliding, plummeted another 14 percent on Tuesday before paring some losses and ending 10.55 percent down.
Radiation levels around the Fukushima No.1 plant on the eastern coast had "risen considerably", said Japan's Prime Minister Naoto Kan, and his chief spokesman announced the level was now high enough to endanger human health.
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