The Japanese yen climbed today, posting the biggest gain against the euro in five weeks, as Chinese manufacturing and speculations about the future monetary policy of the US Federal Reserve made investors nervous and unwilling to risk.

The Australian dollar recovered a bit today against the US dollar and the Japanese yen after yesterday’s big drop. The decline was caused by weakness of commodities and stocks that followed the International Monetary Fund’s economic forecast of this year.

The Australian dollar extended yesterday’s gains versus the Japanese yen and losses against the euro today. The currency weakened against the US dollar, paring the earlier rally.

The Australian dollar fell against the Japanese yen and touched the lowest level since October versus the US dollar today as Asian stocks declined. The Aussie rebounded versus the greenback but stayed weak against the Japanese currency.

The fundamental data was mixed for the Australian dollar today. As a reflection of that, the currency rose against its US peer, but dropped against the Japanese yen.

The New Zealand dollar fell today even after China’s inflation grew more than expected, adding to the positive market sentiment. The currency dropped on speculations that the recent rally was overdone and as Asian stocks paused their advance.

The New Zealand dollar advanced yesterday and kept its gains today as optimism returned to the Forex market and stocks rallied on hopes for corporate earnings in the United States. The currency reached the highest level since 2008 against the Japanese yen.

The South African rand advanced today, before retreating a bit, as investors ramped up buying of the country’s bonds and on speculations that increasing demand for raw material will boost commodity currencies.

The Canadian dollar rallied to the highest level since March against the Japanese yen and advanced versus the US dollar after the Federal Reserve expanded its asset purchase program. The currency retreated against the euro.

The US dollar erased its yesterday’s gains and remained soft today on hopes that the US politicians will make progress in talks about ways to avoid the fiscal cliff. The dollar was stronger versus the Japanese yen.