The Japanese yen advanced to a five-week high versus the greenback

* A decline in Asian stocks and speculation that Japan's biggest banks are under pressure to raise capital was behind the yen rally. The Japanese currency traded at 89.15 per dollar as of 06:45 GMT from 89.25 in New York yesterday, when it advanced to 88.74, the highest level since October 9.
* The greenback recovered significantly against major currencies as stock markets eased after U.S. inflation, industrial production and housing data missed expectation. In the long-term, persistent negative data out of the U.S. should lead to weakness in the greenback. But for now investors flock towards the dollar as it is widely considered a safe-haven currency.
* The sterling traded near a two-month high against the euro before the Bank of England releases minutes of its November 5 meeting where policy makers expanded their asset-buying program by 25 billion pounds to 200 billion pounds.
* Crude oil rose for a third day as industry estimates showed huge decline in crude inventory. The American Petroleum Institute said yesterday crude inventories fell by 4.37 million barrels last week to 333.1 million after a hurricane in the Gulf of Mexico. The benchmark contract moved as high as $79.70 a barrel, but upside momentum decreases as price moves closer to $80. The US Energy Department will deliver its weekly report in the U.S. session today. Crude inventory probably climbed by 0.8 million barrels according to market expectations.