TOKYO (Dow Jones) - The outbreak of swine flu over the weekend in Mexico a safe haven to the foreign exchange market to buy the yen against the wide range of currencies, especially for the Mexican peso, because Japan is geographically isolated diseases, traders said.

"So far, no swine flu reported in Japan, since Japan's an island, I think it is easier in Japan than in many other countries continue to bird flu in the Gulf," said Yuji Saito competent Industrial Exchange Group.

Dollar dropped to Y96.51 from Y97.17 in New York Friday, the euro fell to Y127.04 from Y128.79. Mexican peso fell to Y7.2864 Friday from Y7.0846 itself. New Zealand dollar against the U.S. dollar and Australian dollar against the U.S. dollar also fell against the yen.

"The players were worried about the spread of avian flu, because it will drag on economic activity, which greatly limit the transport of goods and people," Saito noted.

So far a number of cases have been confirmed, mainly in Mexico, led to the fall in the peso exchange rate. New Zealand and Australian dollars and Malaysian ringgit also weaker against the United States shares. Suspected bird flu cases have also been reported in other in North America, Oceania and Europe.

Although do not know where and how the rapid spread of avian flu, the World Health Organization said today that it has identified current events constitute a public health emergency of international concern.

A week ago, the players are concerned about the U.S. gross domestic product data, January to March period is scheduled for release Wednesday.

"According to how these events, the yen may strengthen the firm," said Yang before the courts, a senior currency trader at Nomura Securities.

Also pointed out that the front does not affect the currency market over the weekend meeting in Washington by the financial responsibility for the G-7 countries, as well as Japan's revision of its economic growth forecast, 2009 fiscal year began in April Records of the worst contraction of 3.3 percent.

"We could not find any new (trade factors) from these" events, he said.