“The yen gained the most in eight months against the dollar after Japan’s economy minister said the nation faces risks from excessive declines. U.S. stock-index futures fell, while platinum reached a three-month high and Spanish notes rose after a debt sale.
The yen strengthened 1.1 percent 88.54 per dollar at 8 a.m. in New York after climbing 1.3 percent. South Africa’s rand slipped against its 16 major peers, while platinum jumped 1.9 percent. Standard & Poor’s 500 Index futures slid 0.4 percent and the Stoxx Europe 600 Index lost less than 0.1 percent. Lonmin Plc, the world’s third-largest platinum producer, rallied to a three-month high. Spanish securities rebounded after the country sold more debt than targeted and 10-year Treasuries rose for a third day.
Economy Minister Akira Amari warned of harmful effects “if the yen excessively weakens” in Tokyo today. Treasury SecretaryTimothy F. Geithner warned yesterday of severe economic hardship should Congress fail to raise the debt ceiling that lawmakers have increased or revised 79 times since 1960, including 49 times under Republican presidents. Anglo American Platinum Ltd. said it will idle four shafts in South Africa, cutting output by 400,000 ounces a year after a review of its operations.
“The world has gone massively short yen on the idea that Japan is going to be more aggressive with its stimulus under the new prime minister,” said Imre Speizer, an Auckland-based strategist at Westpac Banking Corp. “Comments like Amari’s are likely to spook those holding yen shorts.” A short position is a bet a security will decline in value….”
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