Asian session: The yen reached its strongest level in a week

The yen reached its strongest level in a week after Spain’s Prime Minister Mariano Rajoy delayed seeking a sovereign bailout for his country, spurring demand for haven assets amid Europe’s fiscal turmoil. Rajoy said yesterday after a meeting in Madrid with French President Francois Hollande that his nation won’t seek a second bailout until European leaders make aid conditions clear. Spain locked in as much as 100 billion euros ($125 billion) in international aid for banks last month.

Japan’s currency is set to gain versus most of its major peers this week as three Spanish regions said they will need emergency loans.

Moody’s Investors Service said its review of Spain’s debt rating will continue through September and reiterated the risk of a possible downgrade. Moody’s review of Spain’s credit score, which started on June 13, will probably continue through September, the New York based ratings firm said in a statement yesterday. The company reduced Spain to its lowest investment grade level on June 13, cutting it three steps to Baa3 from A3.

The dollar was supported as investors weigh whether Federal Reserve Chairman Ben S. Bernanke will signal new stimulus when he speaks today in Jackson Hole, Wyoming.

EUR / USD: during the Asian session, the pair traded above $1.2500.

GBP / USD: during the Asian session, the pair traded in the range of $1.5780-00.

USD / JPY: during the Asian session the pair fell below Y78.50, refreshing week‘s low.