* Yen on course to post 3 straight quarters of gains
* Swiss franc hits one-mth peak vs dollar, 6-week high on
* Concerns about Deutsche Bank sour risk sentiment
* Sterling in longest losing quarterly streak since 1984
By Hideyuki Sano
TOKYO, Sept 30 The Japanese yen looks set to log
its third straight quarter of gains on Friday, while the Swiss
franc held firm as concerns about the health of Deutsche Bank
undermined investor risk appetite.
The yen traded at 101.20 yen to the dollar, bouncing
back from Thursday's low of 101.845, and not far from a
one-month high of 100.085 touched on Tuesday.
The yen, often seen as a safe-haven currency, rebounded as
global share prices slipped on worries about Deutsche Bank
, under pressure from a massive fine the United States
demands over its sales of mortgage-backed securities.
The latest lurch came after Bloomberg reported that a number
of hedge funds that clear derivatives trades with Deutsche had
withdrawn some excess cash held at the lender.
The yen has gained 2.0 percent so far this quarter, on
course to log its third consecutive quarter of gains, as
investors suspect the Bank of Japan has reached a practical
limit in stimulus and has lost clout in cheapening the yen.
For now, though, the dollar has been supported above 100,
seen as a psychologically important level by many.
Speculation that Japanese investors may buy more foreign
assets in their new business half-year starting from Oct 1.
could stem the yen's gains in the near term.
Traders are also wary of possible attempts by Japanese
authorities to talk down the yen, even though they think their
intervention at this stage is unlikely.
"On the whole, I would expect the dollar to gradually weaken
broadly, for as it stands now, Democrats are likely to win the
White House, which means the Fed will remain cautious on raising
rates," said a trader at a European bank.
The Swiss franc hit a one-month high of 0.9640 franc
to the dollar. Against the euro, the franc hit a six-week high
of 1.0833 franc per euro.
Also fanning flight-to-quality bids was India's military
strike of Pakistan-ruled Kashmir on Thursday.
Indian officials said elite troops crossed into Kashmir and
killed suspected militants preparing to infiltrate and carry out
attacks on major cities, in a surprise raid that raised tensions
between the nuclear-armed rivals.
The Indian rupee posted its biggest fall since
June, sapping budding enthusiasm to the hunt for yields in
emerging market currencies.
The euro was little moved at $1.1223, having stayed
in a narrow trading range of just over two cents for the whole
of September, the tightest since June 2014.
The British pound stood at $1.2972, weighed by
expectations that the Bank of England might further ease
monetary policy in coming months.
On the quarter, the pound lost 2.6 percent, which would be
the fifth quarter of losses in a row, the longest such streak
Some currency analysts think the pound's outlook remains
bleak given worries that an exit from Europe's single market
will drag Britain into a recession and blow out its ballooning
current account deficit, already among the highest in the
"The current account deficit in UK is close to 7 pct. Budget
deficit is close to 5 pct of GDP. We got political turmoil. And
for that, it will give zero percent yield. How much of that
would you like to buy?," said David Bloom, London-based global
head of Forex strategy at HSBC.
(Editing by Jacqueline Wong)