for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

FOREX-Dollar rallies vs yen on Buffett plan

(Updates prices, adds comment, changes dateline, previous LONDON)

NEW YORK, Feb 12 (Reuters) - The dollar rose against the yen on Tuesday after Warren Buffett told CNBC television that Berkshire Hathaway had offered to assume the liabilities of the monoline bond insurers.

U.S. stock futures rose on the news, and that helped boost risk appetite across markets and lift the dollar against the yen and Swiss franc. Low-yielding currencies tend to rise with risk aversion but suffer when investor outlook improves.

The dollar rose to 107.47 yen JPY= on the news from around 107.10 earlier. It was up 0.5 percent from late Monday. The euro EUR= also rose 0.5 percent to 156.12 yen EURJPY= but was little changed against the dollar at $1.4527 EUR=.

“If equities rally on this news, assuming that the worst is behind us and Buffett is the ultimate stop loss, than it should be positive for dollar-yen the rest of the day,” said Boris Schlossberg, senior currency strategist at DailyFX.com in New York.

Buffett told CNBC his plan would cover $800 billion in municipal bonds and said one bond insurer has rejected his offer.

Bond insurers guarantee over $2.4 trillion of debt and have been struggling to hold onto their top credit ratings because they’ve suffered losses from backing mortgage securities that have plunged in value. (Reporting by Steven C. Johnson; Editing by Andrea Ricci)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up