* Yen gains as geopolitical worries increase
* Euro-yen sinks for 11th straight day, touches lowest since
* French presidential election also weighs
(Updates to U.S. afternoon trading, adds data, quote)
By Dion Rabouin
NEW YORK, April 11 The dollar fell broadly on
Tuesday, nearly touching a five-month low against the Japanese
yen, as geopolitical risk and declining U.S. Treasury yields
pushed traders out of the greenback.
The yen gained across the board on concerns about Syria and
North Korea, and a resurgence of a previously written-off
left-wing contender in France's presidential race further
prompted buying of the safe-haven currency.
"It shows how nervous markets are about the geopolitical
situation," said Marc Chandler, global head of currency strategy
at Brown Brothers Harriman. "And at the end of the day the focus
on the geopolitical data is coming without much serious economic
U.S. Treasury yields fell for a second straight day as
The yen rose in what analysts called a "knee-jerk reaction"
after Reuters reported black smoke rising from part of an
airfield in Moscow. The smoke turned out to be caused by grass
and refuse burning nearby.
That move pushed the dollar through the key technical level
of 110 yen, prompting a reversal of many positions.
"Taking (the news) in conjunction with what looks to be
limited liquidity conditions in the holiday-shortened week
leaves this pair and the market more generally very prone to
large moves," said Mazen Issa, senior FX strategist at TD
The dollar fell more than 1 percent against the yen
and was last trading at 109.67 yen, its lowest since Nov. 17.
The euro also fell 1 percent against the yen as
investors weighed the possibility of a face-off between
far-right candidate Marine Le Pen and hard-left candidate
Jean-Luc Melenchon, who has surged in polls recently.
Pledges by Le Pen and Melenchon to hold referendums on
France's membership in the European Union have sparked fears
among investors of the potential for a wider breakup of the euro
The single currency suffered its 11th straight day of
declines against the yen; it was the longest streak in the
history of the euro, Chandler noted. The euro fell to 116.31
yen, the lowest since Nov. 17.
The dollar index, which gauges the U.S. currency
against a basket of six major peers, was off 0.3 percent on the
day at 100.71.
(Reporting by Dion Rabouin; Additional reporting by Ritvik
Carvalho; Editing by Dan Grebler and Steve Orlofsky)