Fallout from the US subprime mortgage crisis has benefited the yen by way of its effects in the UK.

Customers of Northern Rock building society have been withdrawing their savings after it emerged the Bank of England had to issue a loan to the company to help it meet its obligations.

According to Bloomberg figures, the yen made a gain of 0.3 per cent on the pound yesterday, rising to 228.88.

It is the third consecutive day that the yen has made gains on the pound and comes as the amount of money withdrawn by Northern Rock savers tops £2 billion.

British chancellor Alistair Darling has issued assurances that the government will underwrite all deposits with the bank and promised savers that they will not lose a penny.

The worldwide fallout from the US subprime meltdown has also seen the Japanese currency make further gains on the euro - up to 158.99 - and the dollar, climbing to 114.86.