* Yen slides as dovish Yellen comments boost riskier assets
* Yen hits 2-month low versus dollar
* Yellen suggests U.S. stimulus to remain for now
NEW YORK, Nov 15 The dollar climbed to a fresh
two-month high against the yen on Friday after Federal Reserve
Vice Chair Janet Yellen lifted investor appetite for higher-risk
assets by defending the U.S. central bank's current stimulus
Comments widely interpreted as confirming Yellen's dovish
stance and showing there would be no reduction of stimulus
anytime soon dented the low-yielding yen, which typically falls
when investors are looking to take on risk.
She was nominated by President Barack Obama to succeed
current Fed Chairman Ben Bernanke, whose term expires at the end
"The take away from Janet Yellen's comments (Thursday) was
that a Federal Reserve led by her would leave many of the
current policies in place, providing very little disruption,"
said Camilla Sutton, chief FX strategist at Scotiabank in
The dollar rose 0.2 percent to 100.22 yen, having
touched a high of 100.43 yen earlier in the global trading day
and giving it the potential to target the Sept. 11 high of
The yen fell broadly, with sterling hitting a four-year high
against the Japanese currency.
"The dollar/yen exchange rate broke a series of lower highs
dating back to its multiyear peak, and indeed the surge offers
evidence that it may yet continue higher," said David Rodriguez,
quantitative strategist at DailyFX in New York.
Options markets showed some investors betting on dollar
strength against the yen in the weeks to come.
However, Yellen's dovish comments put little downward
pressure on the dollar against currencies which have benefited
most from the flood of Fed liquidity in the banking system.
Against a basket of currencies, the dollar eased
marginally at 80.959.
"The dollar only reacted very moderately as Yellen signaled
continuity," said George Saravelos, currency strategist at
Deutsche Bank in London.
But he also said the remarks were enough to spark a rally in
riskier assets and weigh on the yen.
The Australian and New Zealand dollars, which offer higher
yields than many other currencies and often gain when investors'
risk appetite increases, both rose. The Australian dollar
traded up 0.5 percent at $0.9361 while the New Zealand dollar
rose 0.6 percent to $0.8319 cents.
The euro was up 0.2 percent at $1.3482 after touching
a six-day peak of $1.3505. The euro rose against the yen
, however, hitting a two-week high of 135.25 yen.
For the week, the dollar gained 1.1 percent against the yen,
its third straight weekly advance. The euro gained 0.8 percent
against the dollar this week.
Despite Friday's gains, analysts said it remains under
pressure from the disparity between the U.S. and European
economies - underlined by weak euro zone GDP numbers on Thursday
which kept alive the possibility of more central bank action to
U.S. industrial production dipped unexpectedly in October as
output at power plants and mines declined, but a third straight
month of gains in manufacturing output suggested the economy
remained on a moderate growth path.