June 23 (Bloomberg) -- The yen gained against the euro for a fourth day and rose versus the dollar as concern that weakness in U.S. housing and European manufacturing will hamper the global recovery spurred demand for the currency as a refuge.
The dollar traded near a four-week low versus the yen as a report showed U.S. new-home sales plunged in May to a record low. Japan's currency rose against all 16 of its most-actively traded counterparts after data showed growth in European services and manufacturing industries slowed in June. Australia's dollar pared gains after a report the prime minister may face a leadership challenge tomorrow.
"Housing has always been the weakest link in the U.S. economic-recovery story," said Boris Schlossberg, director of research at online currency trader GFT Forex in New York. "It's a very significant part of the total overall U.S. GDP. It could be a drag on growth into the second half".
The dollar weakened 0.5 percent to 90.08 yen at 10:12 a.m. in New York, from 90.57 yesterday. It touched 90 yen, near a one-month low of 89.97 reached June 21. The euro tumbled 1 percent to 110.05 yen, from 111.14 yesterday. The euro depreciated 0.4 percent to $1.2218, from $1.2271.
"The medium-term picture for the euro is still bearish," said Ian Stannard, a senior foreign-exchange strategist at BNP Paribas SA in London. "The recovery we've seen since the beginning of June has pretty much run out of steam. The yen benefits from some support on safe-haven demand".
