Yen gives up gains as oil prices, Europe markets rise

London

THE yen gave up gains on Wednesday as oil prices and stock markets in Europe ticked higher, removing some of the appeal of the safe-haven Japanese currency.

Earlier, the yen had strengthened as Asian stock markets fell and oil prices slipped. In addition, China fixed a softer mid-point for the onshore yuan, a factor that weighed on riskier emerging market currencies and growth-linked currencies such as the Australian dollar.

Against the yen, the US dollar was steady on the day at 114.12 yen, recovering from a low of 113.37 yen struck early in the London session. "We expect the dollar to trade between 112 and 114 yen, with the market cautious about driving it towards 110 yen, as that could spark off talk of intervention by the Japan…