The yen slipped to the weakest level in almost two months versus the dollar as speculation that the Bank of Japan will boost stimulus measures sapped demand for the nation’s assets as a haven.
Japan’s currency was set for its longest run of declines against the dollar since April 2011 as Treasury two-year yields reached the highest in two months relative to Japanese peers. The euro snapped a two-day gain versus the dollar as German Chancellor Angela Merkel said the region’s debt crisis won’t be quickly solved. The krona rose to a two-week high versus the euro as Sweden’s central bank governor said there are risks in keeping interest rates low.
“The rise in U.S. bond yields is certainly consistent with a weakness in the dollar-yen,†Nick Bennenbroek, head of currency strategy at Wells Fargo & Co. in New York, said in a telephone interview. “That’s a dynamic that’s been relevant for price action over the last few days.â€
via Bloomberg
