“The yen weakened as Asian and European stocks gained amid waning speculation that theFederal Reserve will reduce monetary stimulus.
Japan’s currency depreciated beyond 100 per dollar after climbing to the strongest in three weeks yesterday. Australia’s dollar declined versus all of its 16 major counterparts after theReserve Bank said the inflation outlook provided some scope for further monetary easing. South Africa’s rand strengthened for a second day against the U.S. currency amid demand for higher-yielding assets.
“The market is giving back some of its recent moves, with the yen weakening,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “The performance of the U.S. economy and Fed policy direction will be important for the yen.”
The yen fell 0.4 percent to 99.90 per dollar at 7:09 a.m. New York time after depreciating to 100.42. It appreciated to 98.87 yesterday, the strongest since May 9. Japan’s currency declined 0.5 percent to 130.85 per euro after gaining 1 percent during the previous two days. The euro was little changed at $1.3091.
Japan’s currency will weaken toward 110 per dollar over the next 12 months, Bank of Tokyo-Mitsubishi’s Hardman said.
The MSCI Asia Pacific Index of shares gained 1.1 percent and the Stoxx Europe 600 Index advanced 0.3 percent.