* Swiss franc near 1-mth high vs dollar, hits 6-wk high on
* Concerns about Deutsche Bank sour risk sentiment
* Dollar/yen rises in possible flow-driven move at month-end
* Yen on track to post 3 straight quarters of gains
By Masayuki Kitano and Hideyuki Sano
SINGAPORE/TOKYO, Sept 30 The safe haven Swiss
franc held firm on Friday as concerns about the health of
Deutsche Bank undermined risk sentiment, while the Japanese yen
looked set for its third straight quarter of gains despite
suffering a slight loss on the day.
Earlier, the dollar rose from around 101.15 yen to 101.80
yen in the space of a few minutes, a move that traders said
appeared to be flow-driven rather than in reaction to any
While the catalyst was unclear, one trader said there may
have been dollar buying linked to the month-end or quarter-end.
The dollar later pared some of its gains and was last
trading at 101.28 yen, up 0.2 percent yen on the day. That was
still down from Thursday's high of 101.845 yen.
The yen, often seen as a safe-haven currency, has rebounded
from Thursday's trough versus the dollar as global share prices
slipped on worries about Deutsche Bank, under
pressure from a massive fine the United States demands over its
sales of mortgage-backed securities.
The latest lurch came after Bloomberg reported that a number
of hedge funds that clear derivatives trades with Deutsche had
withdrawn some excess cash held at the lender.
Another focus is next week's U.S. economic data.
The dollar is likely to head lower against the yen if the
U.S. indicators are weak, said a trader for a Japanese bank. He
added, however, that any downside test is unlikely to be
sustained and that there are likely to be phases when the dollar
gets a lift from short-covering.
The yen has gained about 2 percent so far this quarter, on
course to log its third consecutive quarter of gains, as
investors suspect the Bank of Japan has reached a practical
limit in stimulus and has lost clout in cheapening the yen.
For now, though, the dollar has been supported above 100
yen, seen as a psychologically important level by many.
Traders are also wary of possible attempts by Japanese
authorities to talk down the yen, even though they think their
intervention at this stage is unlikely.
"On the whole, I would expect the dollar to gradually weaken
broadly, for as it stands now, Democrats are likely to win the
White House, which means the Fed will remain cautious on raising
rates," said a trader at a European bank.
The Swiss franc hit a six-week high against the euro at
1.0832 franc earlier on Friday. Against the dollar,
the Swiss franc stood at 0.9661 franc, having set a
one-month high of 0.9640 franc on Thursday.
The euro eased 0.1 percent to $1.1217, having stayed
in a narrow trading range of just over two cents for the whole
of September, the tightest since June 2014.
The British pound held steady at $1.2969.
Expectations that the Bank of England might further ease
monetary policy in coming months have weighed on sterling.
On the quarter, the pound lost 2.6 percent, which would be
the fifth quarter of losses in a row, the longest such streak
Some currency analysts think the pound's outlook remains
bleak given worries that an exit from Europe's single market
will drag Britain into a recession and blow out its ballooning
current account deficit, already among the highest in the
"The current account deficit in UK is close to 7 pct. Budget
deficit is close to 5 pct of GDP. We've got political turmoil.
And for that, it will give zero percent yield. How much of that
would you like to buy?," said David Bloom, London-based global
head of Forex strategy at HSBC.
(Reporting by Hideyuki Sano, additional reporting by Masayuki
Kitano; Editing by Simon Cameron-Moore)