* Yen hits lowest in nearly 4 years vs dlr, 3-yr low on euro
* USD/JPY eyes 100, a level not seen since April 2009
* Profit-taking helps limit dollar/yen's rise
* Aussie edges up after Chinese consumer inflation eases
By Masayuki Kitano and Ian Chua
SINGAPORE/SYDNEY, April 9 The yen pushed deeper
into multi-year lows versus the dollar and euro on Tuesday as
the market saw every reason to sell the currency with the
Japanese central bank on a warpath to battle deflation.
The dollar rose to as high as 99.67 yen on trading platform
EBS, the greenback's strongest level versus the yen since May
2009. The dollar later pulled back a bit on profit-taking and
last stood at 99.25 yen, down 0.1 percent on the day.
The euro hit its highest since January 2010 against the yen
of 129.935 yen. The euro last changed hands at about
129.59 yen, up 0.3 percent from late U.S. trade on Monday.
Since the Bank of Japan (BOJ) unveiled a massive stimulus
programme last Thursday, the dollar has climbed roughly 7
percent against the yen.
"For USD/JPY, upside momentum remains strong and an eventual
test of 100.00 seems in the cards, though there are likely to be
a number of barriers between 99.50 and 100.00," said Vassili
Serebriakov, strategist at BNP Paribas.
"Markets are increasingly focussed on the notion that larger
JGB purchases at longer maturities by the BOJ could push
Japanese domestic long-term investors elsewhere."
Speculation that Japanese investors might start increasing
overseas investment in search of higher yields has helped
trigger a rally in some European bond markets in recent
sessions, with French 10-year bond yields hitting
a record low on Monday.
Some market players sold the dollar on Tuesday to lock in
profits, and there was talk of dollar offers in the 99.80 yen to
100.00 yen area, a trader for a U.S. bank in Singapore said.
One possible technical resistance for the dollar lies at
about 99.73 yen, which is the 50 percent retracement of the
dollar's drop from a June 2007 high of 124.14 yen down to a
record low of 75.311 yen set in October 2011.
Underscoring the Japanese currency's weakness, commodity
currencies touched multi-year highs against the yen on Tuesday,
with the Australian dollar hitting its highest since July 2008
at about 103.80 yen and the New Zealand dollar rising
to its highest since February 2008 at about 84.49 yen
The Australian dollar gained a quarter of a cent against the
U.S. dollar after data showed China's annual consumer inflation
eased to 2.1 percent in March from February's 3.2 percent,
leaving Chinese policymakers room to keep monetary policy loose
to support an economic recovery.
The Aussie dollar hit an intraday high of $1.0448 after the
Chinese inflation data and last fetched $1.0432, up 0.2 percent
from late U.S. trade on Monday.
Elsewhere, the euro rose 0.4 percent to $1.3059,
having triggered some stop-loss buying at levels near $1.3050.