The yen fell against all its major counterparts as a gain in Asian stocks and signs global growth is accelerating cut demand for the safety of Japan’s currency. The yen dropped for a third day versus the euro before a European report that economists said will show producer-price inflation accelerated in the region to the fastest since 2008. Asian currencies strengthened, led by the Philippine peso and Thai baht, on optimism quicker growth in the U.S. and Europe will boost the region’s export outlook. “Asian equity markets have a bullish tone which should be a negative for the yen,” said Masafumi Yamamoto, chief currency strategist in Tokyo at Barclays Bank Plc, the U.K.’s third- largest lender. “That could be a reason for yen weakness.” The yen declined to 112.82 per euro as of 6:42 a.m. in London from 112.51 yesterday in New York, extending its loss over the past three days to 0.9 percent. Japan’s currency weakened to 81.49 per dollar from 81.35, and slid 0.3 percent to 82.46 per Australian dollar. The euro traded at $1.3845 from $1.3829, after earlier rising to $1.3862, the highest level since Nov. 9. The yen fell the most against the South Korean won and Taiwan dollar of the 16 major currencies as the MSCI Asia Pacific Index of regional shares rallied for a second day, adding 1.3 percent. Global Growth U.S. companies added workers for a 12th month in January, increasing employment by 140,000, according to a Bloomberg survey before ADP Employer Services reports the figures today. A Labor Department report on Feb. 4 will show employment climbed by more than 140,000 in January, after a 103,000 gain in December, a separate survey showed. The report may also show the jobless rate rose to 9.5 percent from 9.4 percent. The euro touched a three-month high against the dollar on speculation European Central Bank policy makers meeting tomorrow will say they are concerned about quickening inflation. European producer prices rose 5.2 percent in December from a year earlier, according to a Bloomberg survey before today’s report. Inflation in the euro region accelerated to a 2.4 percent annual rate in January, the statistics office said in a preliminary estimate on Jan. 31. “A very hawkish ECB is priced in at this point and U.S. dollar sentiment has certainly waned,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “There’s enough confidence in the general risk-on move that it’s undermining the U.S. dollar safe-haven role.” Asian Currencies Asian currencies rose as optimism the global recovery is gaining momentum spurred demand for higher-yielding assets. “There is a risk-on mood again in the market, boosting the regional currencies and the baht,” said Norawit Suparinayok, a foreign-exchange trader at Bangkok Bank Pcl, the nation’s biggest lender. “Good U.S. data boosts confidence in the global recovery.” Indonesia’s rupiah gained after a government report yesterday showed overseas shipments climbed by more than some economists forecast. Six of 22 economists surveyed by Bloomberg said Bank Indonesia will raise its reference rate this week after inflation accelerated to a 21-month high in January. The Philippine peso gained 0.6 percent to 43.989 per dollar, the Thai baht strengthened 0.3 percent to 30.84, and Indonesia’s rupiah rose 0.2 percent to 9,018. The Swiss franc rose to a four-week high against the dollar. The franc advanced to 93.40 centimes from 93.54, after touching 93.29, the strongest since Jan. 4. N.Z. Dollar New Zealand’s dollar traded near a 10-week high versus the greenback as Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, said whole milk powder prices rose to the highest since June. Traders are betting stronger exports, which make up 30 percent of the economy, will prompt New Zealand’s central bank to raise interest rates by 66 basis points over the next year, according to a Credit Suisse AG index based on swaps. “As long as the Fed and other central banks stay with their low rates policy, you will end up with inflation and it’s going to end up being food inflation,” said Tony Allen, global head of currency trading in Sydney at Australia & New Zealand Banking Group Ltd., Australia’s third-largest lender by market capitalization. “The kiwi will outperform everything.” The so-called kiwi dollar was at 78.07 U.S. cents from 78.14 cents, after rising to 78.26 yesterday, the highest since Nov. 22. To contact the reporters on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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