Yen Touches Month-Low on Stock Gains, Summit Optimism

Yen Touches Month-Low on Stock Gains, Summit Optimism

The yen slipped to the weakest level in almost two months versus the dollar as stock gains and speculation that the Bank of Japan (8301) 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 March 2011 after Treasury yields reached the highest in a month 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 solved in one go. 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.
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Japan’s currency slid versus all of its 16 major counterparts amid speculation the country’s central bank will boost stimulus measures on Oct. 30. Photographer: Kiyoshi Ota/Bloomberg
“You have a lot of people speculating on the Bank of Japan easing,” said Kiran Kowshik, London-based currency strategist at BNP Paribas SA. “The yen weakness as well is about risk sentiment and we’ve seen Japanese investors, in terms of data, have been buying more foreign bonds. You could see upward pressure on yen crosses in anticipation of BOJ easing.”
The yen fell 0.5 percent to 79.33 per dollar at 7:19 a.m. New York time, the weakest since Aug. 22. It hasn’t fallen on six consecutive days since the period through April 1, 2011. The Japanese currency depreciated 0.4 percent to 103.93 per euro. It touched 104.07, the weakest since May 8.
The 17-nation common currency slipped 0.1 percent to $1.3101, after rising to $1.3140 yesterday, the strongest since Sept. 17