The yen gained against the dollar for a sixth straight day, approaching a three-year high, as stocks fell on speculation banks will have to write off more mortgage-related debt.

Japan’s currency reached its strongest level of the day as traders pared so-called carry-trade purchases of higher-yielding assets funded in yen after Federal Reserve Chairman Ben S. Bernanke urged banks to forgive more mortgage loans. The dollar traded close to a record low versus the euro as traders stepped up bets the Fed will reduce rates to 2.25 percent this month.

(Bloomberg)